281 U.S. 111 (1930)
Respondent Earl and his wife resided in the State of California at all times relevant to this dispute.1 In 1901, the couple executed a contract providing that any property either of them might acquire in the future through earnings, including salaries and fees, or from other sources such as gifts, bequests, devises, or inheritances, along with all proceeds, issues, and profits from such property, would be treated as joint tenants with the right of survivorship and not otherwise.2
During the tax years 1920 and 1921, Earl generated substantial income in the form of salary and attorney's fees earned through his personal services as an attorney.3 The Commissioner of Internal Revenue determined that the entire amount of this income was taxable to Earl and assessed the corresponding tax liability.4 The Board of Tax Appeals affirmed the Commissioner's ruling after review.5
The Circuit Court of Appeals reversed the decision of the Board.6 This prompted the Supreme Court to grant a writ of certiorari.7
Whether the respondent, Earl, could be taxed for the whole of the salary and attorney’s fees earned by him in the years 1920 and 1921, or should be taxed for only a half of them in view of a contract with his wife?8
The Revenue Act of 1918 and the Revenue Act of 1921 impose a tax upon the net income of every individual.9 This includes income derived from salaries, wages, or compensation for personal service of whatever kind and in whatever form paid.10 The statute taxes salaries to those who earned them.11 It provides that the tax cannot be escaped by anticipatory arrangements and contracts however skilfully devised to prevent the salary when paid from vesting even for a second in the man who earned it.12 No distinction is drawn according to the motives leading to the arrangement by which the fruits are attributed to a different tree from that on which they grew.13
Yes. The established facts show that Earl earned salary and attorney’s fees through his personal services in 1920 and 1921.14 Although the 1901 contract treated any earnings as joint property held in tenancy with right of survivorship, Earl remained the only party to the contracts by which the salary and fees were earned.15
Earl could be taxed for the whole of the salary and attorney’s fees earned by him.16