The focus of this article is to examine the following questions: 1. whether, despite its unrestricted language, section 102(c) does not apply to some gratuitous transfers to an employee; 2. if so, what are the exceptions to section 102(c); and 3. when section 102(c) does not apply to a transfer, whether it will be excluded from income. Part II of this article examines the conditions under which a gratuitous transfer to an employee will be excluded from income under the Duberstein standard and under the normal tax treatment of testamentary transfers -- in other words, how the section 102(a) gift and bequest exclusion from income is applied when section 102(c) is inapplicable. Part III examines the operation of section 102(c)
Kahn, Douglas A. "The Taxation of a Gift or Inheritance from an Employer." Tax Law. 64, no. 2 (2011): 273-300.