CESARINI V. U.S. 428 F.2d 812 (6th Cir. 1970) CASE BRIEF

CESARINI V. U.S.

428 F.2d 812 (6th Cir. 1969)

NATURE OF THE CASE: This was a dispute over the classification of income.

FACTS: In 1957, Ps purchased a used piano at auction for $15.00. In 1964, while cleaning the piano Ps discovered $4,467.00 in old currency. Ps were unable to ascertain who put the money there and they exchanged the old money for new at a bank. They reported the money on their 1964 tax return as income. In 1965 they filed an amended return and this return eliminated the found money and requested a refund of $836.51. The Commissioner rejected the refund claim and Ps filed this present action. Ps claimed that the money was not includable in gross income under Section 61 and even if the money was gross income, the taxes were due and owing in the year the piano was purchased and the statute of limitations has since passed. In the alternative, if the monies were a treasure trove then it was only to be taxed at the capital gains rates. The Commissioner claimed that the money was taxable as gross income and that it was taxable in the year found and was not entitled to capital gains treatment.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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