Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 78-53

1978-1 C.B. 22

Sec. 61

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Rev. Rul. 78-53

An individual fraudulently received welfare payments under state and Federal assistance programs.

Held, the fraudulently received welfare payments are includible in the recipient's gross income under section 61 of the Internal Revenue Code of 1954 in the year in which they are received. See James v. United States, 366 U.S. 213 (1961), which holds that illegally obtained funds are includible in the gross income of the individual in the year in which the funds are obtained.