Wilcox

This is a review of decision of the Tax Court holding that an embezzler of moneys *934 derives income from such moneys under Section 22 of the Internal Revenue Code, 26 U.S.C.A. Int.Rev.Code, § 22, providing

and that such embezzled funds constitute a part of the embezzler’s taxable gross income.

Laird Wilcox, one of the petitioners, hereafter called Wilcox, entered the employ of the Nevada Transfer & Warehouse Co., a Nevada corporation, in December 1937, in the capacity of bookkeeper and continued in its employ until 1942. During his employment, Wilcox received a regular salary, payable semi-monthly, and was not allowed to draw his salary in advance and was paid his salary promptly as and when due. It is stipulated that at no time during that period of employment was the employer indebted to Wilcox other than .for his salary which was currently paid.

In June 1942, when the books of the Nevada Transfer & Warehouse Co. were audited, it was discovered for the first time that Wilcox had converted to his own use between June 1941 and up to and including June 20, 1942, a total sum of $22,896.01, of which sum $12,748.60, now in controversy, was taken by him between and including June…