Washington Law Review
Abstract
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).
First Page
67
Recommended Citation
Eleanor H. Edwards,
Recent Cases,
Income Tax—Funds Received by Extortion as Income,
28 Wash. L. Rev. & St. B.J.
67
(1953).
Available at:
https://digitalcommons.law.uw.edu/wlr/vol28/iss1/16