PULSIFER V. COMMISSIONER 64 T.C. 245 (1975) CASE BRIEF

PULSIFER V. COMMISSIONER

64 T.C. 245 (1975)

NATURE OF THE CASE: This was a dispute over Irish Sweepstakes winnings for minors for monies deposited with an Irish court. Pulsifer (Ps) sought review of a tax deficiency.

FACTS: Pulsifers are two brothers and one sister (P) and all are minor children. Mr. Pulsifer, their father, acquired an Irish Sweepstakes ticket in his name and the names if his children. They got a telegram that their ticket would be represented by Saratoga Skiddy who would run in the Lincolnshire Handicap. Saratoga placed second and won $48,000. When Mr. Pulsifer applied for the winnings but he was told that 3/4ths would not be released to him because the ticket stub reflected three minor children. He was told that the monies withheld would be placed with the court for the benefit of the children and released with interest when they were 21 or until application was made on their behalf to the court. Mr. Pulsifer filed for a request of the release of the funds. Both parties agree that the prize money is income to P. There was a question as to what year it was to be included under. P contends that neither constructive receipt nor the economic benefit doctrines apply and all that they had in 1969 was a nonassignable chose in action. D argues that the economic benefit doctrine applies and that the monies should be taxed in 1969.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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