Verlin W. And Anna Jo Koons v. United States of America, Charles H. And Cecelia Parker v. United States

Two actions are involved in these consolidated appeals. In each case the appealing taxpayers are husband and wife. In No. 17,905, the taxpayers will be referred to as “Koons” and in 17,906 they will be referred to as “Parker.” Each case was an action to recover taxes erroneously paid, brought in the district court following denial of a claim for refund.

Koons was employed by Phillips Petroleum Corporation in Big Springs, Texas, where he resided. On December 16, 1958, he entered into a contract of employment with Aerojet General Corporation (Aero-jet) to work at its plant near Sacramento, California. He had not previously been employed by that company. The agreement contained a promise by Aero-jet to pay the travel expenses of Koons and his family from Big Springs to Sacramento, including per diem expenses while traveling, living expenses (called “relocation expense”) after his arrival in Sacramento and for a period of not more than fifteen days at not more than $10 per day, and the cost of moving his furniture and belongings. Koons and his family left Big Springs on January 6, 1959 and arrived in Sacramento on January 9, 1959. On January 12, he advised Aerojet that he had arrived…