West Shore Fuel, Inc. v. United States of America, Ruth A. Kolb v. United States

OAKES, Circuit Judge:

The question when income is taxable under the intricate provisions of the Internal Revenue Code is seldom a simple one. The income here consisted of gain that the taxpayers realized on the disposition of their stock in the American Steamship Company for cash and notes of an acquiring corporation. The question is whether the notes constituted “evidences of indebtedness of the purchaser,” in which case tax-' payers are entitled to report their gain on an installment basis under Section 453 of the Internal Revenue Code, 1 or instead con stituted “payments” in the taxable…