Vanicek v. Commissioner

The Forest Preserve District of Cook County, Illinois, was established to acquire and hold forested lands for the purpose of protection, preservation, education, and recreation. The district selected certain employees to act as resident watchmen. Employees serving as watchmen were required to live in residences strategically located within the district’s more than 64,000 acres of land. Although watchmen were not paid additional compensation, they were allowed to live in the residences rent-free. Resident watchmen’s duties included maintaining a phone line; responding to emergency calls; remaining on-site during fire season; patrolling their assigned area for fires, hunters, vandalism, dumping, and encroachments; and submitting monthly reports. Edward Vanicek (plaintiff) worked as a maintenance supervisor at the district’s central garage in downtown Chicago. Vanicek also served as a resident watchman. Vanicek and his wife resided on district property rent-free. At one point, Vanicek was responsible for 824 acres, which he patrolled two to three times per week. Vanicek did not report the fair rental value of the housing provided by the district on his federal income taxes. The commissioner of the Internal Revenue Service (defendant) assessed deficiencies. Vanicek filed a petition with the tax court challenging the commissioner’s determination.