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FACTS: Corey Bumgarner had a draft in the amount of $2,164.46 drawn on Fleet Bank of Hartford, Connecticut, payable to him, sent to his P.O. Box 153, Hillsboro, North Carolina. This payment was related to an auto accident claim against Wood. Crystal Bumgarner, his wife from whom he was separated, cashed the draft. Corey Bumgarner filed suit to have the insurer pay him the $2,164.46. The insurer representing Wood indicated that it had sent order paper to Corey Bumgarner, and that it had been delivered to his post office box and there was, therefore, no claim against it or Wood. The trial court found that there had been no delivery and that Bumgarner was entitled to another check. Wood and his insurer appealed. ISSUE: Had delivery occurred? Why or Why Not?
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Advise what tax consequences arise in respect of the payments.
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