Washington Law Review


T was an associate of X during prohibition when they were bootlegging liquor. After the partnership split up, T demanded money from X. When T threatened the lives of X and his family, X paid T $250,000. Held: The extorted funds are taxable to T as income since they were obtained under a "semblance of a bona fide claim of right" and in effect, without oblgation to repay since X was not likely ever to press demand for a return of the money. Ruthin v. United States, 343 U.S. 130 (1952).

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