Wiggins v. United States, 340 U.S. 81 (1951)
Wiggins v. United States is a pivotal case in the landscape of American tax law, specifically scrutinizing how interest income is treated for federal income tax purposes.
Is interest income fully taxable under the provisions of the Internal Revenue Code?
Under the Internal Revenue Code, all income from whatever source derived, including interest income, is considered gross income and is taxable unless specifically exempted by law.
The Supreme Court held that interest income is fully taxable, affirming the IRS's position that such income must be included in the taxpayer's gross income.
The case is significant as it underscores the principle that definitions within the tax code must be interpreted broadly to fulfill legislative intent. For law students, Wiggins v. United States serves as an example of strict statutory interpretation and illustrates the broad scope of taxable income as intended by Congress. It also demonstrates the Court's unwillingness to read exceptions into the plain language of tax statutes unless explicitly provided.