TaxGuided
Supreme Court cases

Case detail

James v. United States

366 U.S. 213 (1961)

Court

Supreme Court

Date

1961-05-15

Outcome

for-government

Holding

Embezzled funds are includible in gross income in the year received notwithstanding an obligation to repay.

Facts

James embezzled funds from his employer and a union. He argued the funds were not income because of his obligation to repay.

Reasoning

Chief Justice Warren held that embezzled funds are taxable when received under a claim of right, overruling Wilcox. The decision extended the Glenshaw Glass approach to illegal gains.

Case metadata

Jurisdiction: United States
Topics: gross income, embezzlement, claim of right
Statutes applied: 26 U.S.C. 61

Official opinion

Open official decision

Cases cited

Commissioner v. Glenshaw Glass Co.

348 U.S. 426 (1955)

Related citations

Computed from the cross-reference graph. Links open the related entity on this site.

This entry cites

Primary sources

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.