Warren H. Schumann and Maria T. Schumann v. Commissioner of Internal Revenue

Opinion for the Court filed by Senior Circuit Judge MacKINNON.

MacKINNON, Senior Circuit Judge:

Appellants, Warren and Maria Schumann, appeal a decision of the United States Tax Court upholding the Internal Revenue Commissioner’s assessment against them of a $7,943.54 deficiency in their 1977 tax payments. 1 The narrow issue posed by this case is whether a partial liquidation distribution paid to a taxpayer on stock option shares in a corporation, before the shares have been held for a sufficient period to qualify for the preferential tax consideration provided for capital gains, constitutes a…