Kellner v. Commissioner

1976 T.C. Memo. 72, 35 T.C.M. 326, 1976 Tax Ct. Memo LEXIS 333
CourtUnited States Tax Court
DecidedMarch 9, 1976
DocketDocket No. 4724-71.
StatusUnpublished

This text of 1976 T.C. Memo. 72 (Kellner v. Commissioner) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kellner v. Commissioner, 1976 T.C. Memo. 72, 35 T.C.M. 326, 1976 Tax Ct. Memo LEXIS 333 (tax 1976).

Opinion

HELEN KELLNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Kellner v. Commissioner
Docket No. 4724-71.
United States Tax Court
T.C. Memo 1976-72; 1976 Tax Ct. Memo LEXIS 333; 35 T.C.M. (CCH) 326; T.C.M. (RIA) 760072;
March 9, 1976, Filed
Helen Kellner, pro se.
Robert E. Marum and Warren W. Dill, for the respondent.

TANNENWALD

MEMORANDUM FINDINGS OF FACT AND OPINION

TANNENWALD, Judge: Respondent determined the following deficiencies in petitioner's Federal income taxes: *334

YearDeficiency
1967$838.49
1968999.58
Certain concessions having been made by the parties, the issues remaining for our consideration are: (1) the availability of the sick pay exclusion for a portion of petitioner's 1968 gross income, (2) the amount of allowable medical and dental expense deductions available to petitioner for 1967 and 1968, (3) the amount of allowable employee business expenses incurred by petitioner in 1967 and 1968, (4) the deductibility of legal expenses incurred by petitioner in 1967 for divorce proceedings and for her alleged unsuccessful effort to secure an alimony award, (5) the availability of a deduction for expenses incurred in the care of a dependent in 1968, and (6) the amount deductible as charitable contributions for 1968.

To a large extent, the issues involved herein are factual in nature and petitioner bears the burden of proof in respect thereof. Welch v. Helvering,290 U.S. 111 (1933); Rule 142, Tax Court Rules of Practice and Procedure. Further, since many of these factual issues involve the question of amounts actually expended by petitioner, this burden entails adequate substantiation of claimed expenses, *335 a burden not unfamiliar to this petitioner. See Helen Kellner,T.C. Memo. 1971-103, affd. per curiam 468 F. 2d 627 (2d Cir. 1972).

Petitioner was a resident of New York, New York, at the time of filing the petition herein. She timely filed her Federal income tax returns for the years 1967 and 1968 with the district director of internal revenue, Manhattan District, New York. Throughout 1967 and 1968, petitioner was employed as a public school art teacher by the Board of Education of the City of New York. As a teacher, petitioner received compensation of $11,345.62 in 1967 and $10,337.19 in 1968.

Sick Pay Exclusion

Petitioner's annual salary was $12,600 for the 1967-1968 school year, payable in twelve monthly installments of $1,050 each. The payments which she received each month represented compensation for the month preceding the month previous to payment, e.g., she was paid in March for January, April for February, etc. It appears that, for each day of absence on account of illness not represented by fully-paid sick leave, 1/300ths, or $42, was deducted from her compensation.1 Petitioner was paid $294 in April, 1968, $420 in May, 1968, and*336 $294 in June, 1968. Since it is common knowledge that school sessions do not take place on Saturdays, Sundays, or legal holidays, during the week between Christmas and New Year's Day or during the week after Easter, or during the months of July and August, it is obvious, from the 300-day basis of calculation, that a substantial portion of petitioner's compensation was attributable to days on which she was not required to work. Compensation attributable to those periods does not constitute sick pay within the meaning of section 105(d). 2Harry Cohen,41 T.C. 181, 189 (1963). See Rev. Rul. 74-185, 1974-1 C.B. 34, modifying Rev. Rul. 63-219, 1963-2 C.B. 76.

Petitioner was absent on account of illness on February 9, 13, 14, 15, and 16, 1968, and from February 26 through May 24, 1968; she*337 had sick leave available for all days of absence in February and March 1, 4, and 5. Petitioner was not hospitalized at any time due to such periods of illness.

The only days of absence on account of illness for which petitioner was paid were all such days in February and March 1, 4, and 5. The days of February 9, 13, 14, 15, and 16 were separated from the period of continuous absence from February 26 to May 24 and therefore treated separately. See

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Related

Welch v. Helvering
290 U.S. 111 (Supreme Court, 1933)
Knetsch v. United States
364 U.S. 361 (Supreme Court, 1960)
United States v. Gilmore
372 U.S. 39 (Supreme Court, 1963)
Cohan v. Commissioner of Internal Revenue
39 F.2d 540 (Second Circuit, 1930)
Weinroth v. Commissioner
33 T.C. 58 (U.S. Tax Court, 1959)
Cohen v. Commissioner
41 T.C. 181 (U.S. Tax Court, 1963)
Hesse v. Commissioner
60 T.C. No. 72 (U.S. Tax Court, 1973)
Bodzin v. Commissioner
60 T.C. No. 86 (U.S. Tax Court, 1973)

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Bluebook (online)
1976 T.C. Memo. 72, 35 T.C.M. 326, 1976 Tax Ct. Memo LEXIS 333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kellner-v-commissioner-tax-1976.