Opinion ID: 236967
Heading Depth: 1
Heading Rank: 2

Heading: The Estate of Jacob J. Dix

Text: 9 The Tax Court held that Jacob Dix realized taxable income of $56,736.82, i. e., the amount of corporate funds he misappropriated. We think this was error. Jacob withdrew those moneys from the corporate bank accounts without the consent, coerced or otherwise, of the company. That he was the president did not amount to corporate consent. We have here a simple case of embezzlement, not one involving a receipt under any color of right. Accordingly, we think Commissioner of Internal Revenue v. Wilcox, 327 U.S. 404, 66 S.Ct. 546, 90 L.Ed. 752, governs, and that Rutkin v. United States, 343 U.S. 130, 72 S.Ct. 571, 96 L.Ed. 833, does not apply. We do not believe that Rutkin completely obliterated Wilcox. Since the court in Commissioner of Internal Revenue v. Wilcox flatly held that embezzled funds were not taxable income to the embezzler and in the Rutkin case has unequivocally held that extorted funds were taxable income to the extortionist, the line of demarcation lies between those rather closely related factual situations and must be determined by the facts in the individual case. Marienfeld v. United States, 8 Cir., 214 F.2d 632, 637. In the instant case, the facts are close to those of Wilcox, and lack the distinguishing features found in United States v. Bruswitz, 2 Cir., 219 F.2d 59, and cases there cited. See also the dissent of Judge Kalodner in Kann v. Commissioner, 3 Cir., 210 F.2d 247, 253. 10 Affirmed as to J. J. Dix, Inc.; reversed as to Estate of Jacob J. Dix. 11