Document: 343 U.S. 711 72 S.Ct. 994 96 L.Ed. 1237 ROBERTSONv.UNITED STATES. No. 388. Argued March 31, 1952. Decided June 2, Mr. Samuel E. Blackham, Provo, Utah, for petitioner. Marvin Frankel, Washington, D.C., respondent. Justice DOUGLAS delivered the opinion of Court. 1 Petitioner is a musician and composer who between years 1936 1939 composed symphony. In 1945 Henry H. Reichhold, philanthropist, established music award offering $25,000, $5,000, $2,500 three best symphonic works written by native-born composers this hemisphere. The terms offer provided that none compositions could be published or publicly performed prior to entry in contest each composition receiving an would remain property except he grant Detroit Orchestra, Inc., (1) all synchronization rights as applied motion pictures, (2) mechanical phonograph recordings, electrical transcriptions rolls, (3) exclusive right authorize first performance countries whose citizens were eligible enter designate publisher composition. 2 submitted his symphony on December 14, 1947, won $25,000 award. He included amount 1947 income tax return gross income, claimed benefits § 107(b) Internal Revenue Code1, 26 U.S.C. (1946 ed.) 107(b), 53 Stat. 878, amended, U.S.C.A. computed though had been received ratably during 1937, 193 8, 1939. Thereafter filed claim refund ground constituted nontaxable gift.2 Commissioner did not allow but determined deficiency should have under over three-year period ending with 1947. paid deficiency, supplemental refund, brought suit obtain it. District Court, 93 F.Supp. 660, held was gift taxable reason 22(b)(3) Code, 22(b)(3). Court Appeals reversed. 190 F.2d 680. case here certiorari, 342 896, 231, because conflict decision McDermott v. Commissioner, 80 U.S.App.D.C. 176, 150 585, decided Columbia. And see Williams United States, 84 362, 114 Ct.Cl. 1. I. 3 legal sense payment prize winner discharge contractual obligation. acceptance contestants tendered sponsor creates enforceable contract. See 6 Corbin On Contracts 1489; Restatement, Contracts, 521. obligations—the services rendered consideration pursuant contract—is no gift. different if made recognition past achievements present abilities, given services, Old Colony Trust Co. 279 716, 730, 49 499, 504, 73 918, out affection, respect, admiration, charity like impulses. Where rendered, it irrelevant donor derives economic benefit from II. 4 Section 107(b)3 defines 'artistic work' 'musical' composition' individual, 'the work which * covered thirty-six calendar months more beginning completion' particular artistic year less than percentage (not material here), attributable may 'been part preceding close months.' question wether taxed 36 (the received) last (1937 1939) when petitioner wrote 5 phrase question, originated (H.R. 7378, 77th Cong., 2d Sess., 128), read 'ratably year.' form contended, viz. laid extending back year. change wording does seem us meaning. words months' their face refer maximum months. That adopted order treat preceded year, months, whichever such periods shorter.' S.Rep. 1631, p. 109. House Conferees, agreeing change, stated 'clarifies language bill.' H.R. Conf. Rep. 2586, 43. history strongly suggests purpose allowable allocation one covering any done, prevent reduction proration greater duration construction Treasury Regulations 111, 29.107—2;4 while much said, seems fits statutory scheme. Affirmed. 7 FRANKFURTER, having heard argument owing illness, took disposition case. 8 JACKSON dissents. provides: 'For purposes subsection, term invention', means literary, musical, individual patent copyright invention completion invention. If, him per centum respect plus therefrom previous twelve immediately succeeding gain sale exchange capital asset shall aggregate taxes Code 'The following items exempt taxation chapter: value acquired gift, bequest, devise, inheritance. *' note 1, supra. 29.107—2 provides part: method allocating falls exceeding months) within precedes current illustrated examples: 'Example (1). October 1942, A, makes returns basis cash receipts disbursements, receives $36,000 full musical composition, commenced A July 10, 1938, completed January 29, 1943. Although covers 55 allocations only 1942 year). Therefore, $1,000 ($36,000 divided 36) must allocated Accordingly, $12,000 1940, 1941, (2). Assume same facts example September 1944. 38 18 are $2,000 18) $24,000 year).'

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