Rybacki v. All

J. JOSEPH SMITH, District Judge.

Plaintiffs, 607 employee beneficiaries of a profit sharing plan, on termination of the plan by the employer received in March 1958 their shares of the accumulated profit sharing trust. In the cases of three of the employees who sought a ruling as to the income tax treatment of the amount so received, the Acting Director and later the Director of the Tax Ruling Division of the Internal Revenue Service advised that the distributions were ordinary income and fully taxable to the recipients in the year received.

Plaintiffs seek an injunction against assessment and…