United States v. Drescher
United States v. Drescher, 179 F.2d 863 (2nd Cir. 1950) was a United States income tax case before the Second Circuit. The Court held as follows: Facts. A corporation, anticipating its executive's retirement, purchases an "endowment policy," entitling him (the policy-holder) to a lump-sum-certain when he retires in 15 years. Held. The executive must include the premium immediately, as his "basis" for his new policy. Academic commentary. The stakes for the government are as follows: