William A. And Helen M. Lull v. Commissioner of Internal Revenue, Willaim H. And Dorothy Simpson v. Commissioner of Internal Revenue

William A. Lull, William H. Simpson, and their respective wives, appeal from a decision of the Tax Court assessing liability for income taxes on certain payments made to them by their employer incident to their transfer to other posts of duty.

Appellants’ tax returns for the years 1959 through 1961 are involved in this appeal and the law governing our resolution is thus prior to some extensive Congressional revision of the tax laws governing reimbursements for moving expenses. See Int.Rev.Code §§ 62, 217.

The Tax Court opinion is reported in 51T.C. 841 (1969).

Lull and Simpson are employed by International Business Machines (IBM). Pursuant to its “Moving and Living Policy,” it is the practice of this company to reimburse employees for most expenses incurred when the company transfers employees to new posts of duty. Under another of its policies, known as the “Home Guarantee Policy,” IBM pays the employee the difference when the net selling price of the employee’s old residence is less than the appraised value of that residence. Each of these policies gives rise to a question for determination on this appeal.

These policies have already been reviewed by the Court of Claims…