I. Gross Income (sec 61). A. Definition- All income from whatever source derived including but not limited to: (15 items listed in code including compensation for services rendered, etc. B. IRC Does Not elaborate, but following cases do:

1. Glenshaw Glass v. Commissioner, 1955 S.Ct. Issue here was, are punitive damages collected in law suit taxable as income? Supreme Court said yes since sec 61 says any income derived from whatever source. Simply getting the income, even from windfall, is enough.

2. Court reasoned in Glenshaw that Congress has constitutional power to tax income as it sees fit. 3. What Does Word Income Mean? Cesarini case, 1969, was case where TP bought piano and years later, found $4,000 in it. Issue presented was, did TP have taxable income in the year the money was discovered in the piano? This case presented procedural issue of where to take this case when it was not settled between TP and IRS. Fed tax procedural law permits TP to sue in any of three different courts of original jurisdiction:

1, U.S. District court or

2, Claims Court in Washington, D.C., has jurisdiction over any actions against fed government for money, or finally, tax court. Tax court is different from the others since only those who have not yet paid their tax can sue here and not pay until matter is resolved here. The district court and claims court are for controversies where TP has already paid and wants his money back.Another procedural matter before going on to Cesarini is the...

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