Old Colony Trust Co. v. Commissioner

Old Colony Trust Co. v. Commissioner
Supreme Court of the United States
Argued January 10–11, 1929 Reargued April 15, 1929 Decided June 3, 1929
Full case name	Old Colony Trust Company, et al. v. Commissioner of Internal Revenue
Citations	279 U.S. 716 (more) 49 S. Ct. 499; 73 L. Ed. 918; 1929 U.S. LEXIS 66; 1 U.S. Tax Cas. (CCH) ¶ 408; 7 A.F.T.R. (P-H) 8875; 1929-2 C.B. 222; 1929 P.H. P1023
Case history
Prior	On certiorari from the United States Court of Appeals for the First Circuit
Holding
When a third party pays a person's income tax on his behalf, the payment is income that is taxable to the employee.
Court membership
Chief Justice William H. Taft Associate Justices Oliver W. Holmes Jr. · Willis Van Devanter James C. McReynolds · Louis Brandeis George Sutherland · Pierce Butler Edward T. Sanford · Harlan F. Stone
Case opinions
Majority	Taft, joined by Holmes, Stone, Sanford, Brandeis, Sutherland, Van Devanter, Butler
Dissent	McReynolds
Laws applied
Revenue Act of 1926

Old Colony Trust Co. v. Commissioner, 279 U.S. 716 (1929), was an income tax case before the Supreme Court of the United States.^[1]

HELD:

When an employer pays an employee's income tax on the employee's behalf, the payment is taxable as income to the employee.