Walker v. Commissioner, 25 T.C. 832 (1956)

Whether a payment from an employer to a former employee is a tax-exempt gift or taxable compensation depends on the payor’s intent, determined from the facts and circumstances surrounding the payment.

Summary

The case of Walker v. Commissioner centered on whether a payment received by a former vice president from his previous employer was a gift or taxable compensation. The court found that the payment, equivalent to six months’ salary, was additional compensation for services rendered, despite being labeled a