The GWE, a (Not So New) Tax Exclusion Worth a Look— footnotes

¹Glenshaw Glass Co., 348 US 426 (1955); and Nancy J. Vincent, TC Memo 2005-95.

²Ermenegildo Cesarini, 296 FSupp 3 (ND OH 1969), aff’d per curiam, 428 F2d 812 (6th Cir. 1970); see Regs. Sec 1.61-14.

³Theresa A. Burke, 504 US 229 (1992).

⁴General Counsel Memorandum (GCM) 34424 (2/8/71).

⁵Kevin M. O’Gilvie, 519 US 79, (1996); and Schleier, 515 US 323 (1995

⁶Many disaster payments have now also been statutorily exempted from income under recently enacted Sec 139. Rev. Rul. 2003-12, IRB 2003-3, 283 acknowledges that the GWE doctrine overlaps with Sec 139, in that both can apply.

⁷See Chief Counsel Advice (CCA) 200021036 (5/26/00); and IRS Letter Ruling 200451022 (12/17/04).

⁸See CCA 200021036 (5/26/00), note 7 supra.

 ⁹Notice 2003-18, 2003-1 CB 699.

¹⁰Id.

¹¹Black’s Law Dictionary defines the “general fund” as a government’s primary operating fund, a state’s assets furnishing the means for the support of government and for defraying the legislature’s discretionary appropriations. It notes that a general fund is distinguished from assets of a special character, such as trust, escrow and special-purpose funds. Black’s Law Dictionary, p. 682 (7th Ed. 1999).

¹²See IRS Letter Ruling 200451022, note 7 supra, for the application of the GWE to payment from the Federal government. See CCA 200021036 (5/26/00) for application to payment from a state government and Bannon, 99 TC 59 (1992), for application to county government payments.

¹³See CCA 200002050 (10/18/99); 200017040 (4/28/00); 200016019 (4/21/00); and 200013031 (3/31/00).

¹⁴CCA 200022050, note 13 supra.

¹⁵See IRS Letter Ruling 200451022 (12/17/04).

¹⁶Rev. Rul. 2003-12, IRB 2003-3, 283.

¹⁷A Presidentially declared disaster area is defined in Sec. 1033(h)(3).

¹⁸For other disaster-related authority, see Rev. Rul. 98-19, 1998-1 CB 840 (relocation payment made by a local government to an individual moving from a flood-damaged residence is not includible in the individual’s gross income); Rev. Rul. 76-144, 1976-1 CB 17 (grants received by individuals unable to meet necessary expenses or serious needs as a result of a disaster are not includible in the recipient’s gross income); Rev. Rul. 75-28, 1975-1 CB 68; and Rev. Rul. 71-260, 1971-1 CB 57.

¹⁹Rev. Rul. 2003-12, note 16 supra, modified Rev. Rul. 131, 1953-2 CB 112, which held that the GWE applied to disaster payments made by an employer.

²⁰CCA 200022050, note 13 supra.

²¹See CCA 200016019 (4/21/00).

²²See CCA 200017040 (4/28/00).

²³CCA 200013031 (3/31/00). But see Rev. Rul. 82-16, 1982-1 CB 16, in which relocation assistance benefits required to be paid to tenants by landlords under a municipal ordinance were includible in the tenant’s gross income.

²⁴Rev. Rul. 76-373, 1976-2 CB 16; and Rev. Rul. 74-205 1974-1 CB 20.

²⁵Rev. Rul. 76-395, 1976-2 CB 16.

²⁶Rev. Rul. 75-271, 1975-2 CB 23.

²⁷Rev. Rul. 78-170, 1978-1 CB 24.

²⁸Cf Rev. Rul. 79-142, 1979-1 CB 58; and GCM 37781 regarding day-care facility owners providing food to needy children.

²⁹Letter Ruling 200409033 (2/27/04).

³⁰Sec.137 excludes certain adoption expenses. See Sheldon R. Smith, “Tax Exclusion for Adopting Children with Special Needs,” 108 Tax Notes 9 (8/22/05).

³¹Rev. Rul. 74-153, 1974-1 CB 20.

³²CCA 200021036, note 12 supra.

³³IRS Letter Ruling 199924026 (6/21/99).

³⁴See also Rev. Rul. 77-77, 1977-1 CB 11.

³⁵Rev. Rul. 74-74, 1974-1 CB 18.

³⁶Rev. Rul. 76-131, 1976-1 CB 16.

³⁷See also IRS Letter Ruling 9717007; and Rev. Rul. 73-408, 1973-2 CB 15.

³⁸Rev. Rul. 57-102, 1957-1 CB 26.

³⁹CCA 200114044 (4/6/01).

⁴⁰See IRS Letter Ruling 200451022 (12/17/04); and Rev. Rul. 74-153, 1974-1 CB 20.

⁴¹CCA 200021036, note 12 supra.

⁴²IRS Letter Ruling 200451022, note 7 supra.

⁴³See, e.g., CCA 200227003 (7/5/02); and Rev. Rul. 72-340, 1972-2 CB 31.

⁴⁴See Mary Dieter, D MN (4/11/03).

⁴⁵CCA 200227003 (1/15/02).

⁴⁶Dorothy E. Bannon, 99 TC 59 (1992).

⁴⁷See also Ann S. May, TC Memo 1993-86; John L. Meyer, TC Memo 1994-536; and Patricia L. Baldwin, TC Memo 2000-306.

⁴⁸Rev. Rul. 99-3, IRB 1999-2, 10; and Rev. Rul. 76-229, 1976-1 CB 19.

⁴⁹Rev. Rul. 75-246, 1975-1 CB 24; and Rev. Rul. 63-136 1963-2 CB 19.

⁵⁰Rev. Rul. 71-425, 1971-2 CB 76.

⁵¹Rev. Rul. 75-246, 1975-1 CB 24.

⁵²Rev. Rul. 65-139 1965-1 CB 31, as clarified by Rev. Rul. 66-240 1966-2 CB 19; and Rev. Rul. 74-413, 1974-2 CB 333.