Irving Grosswald v. Richard Schweiker, Secretary of Health and Human Services

OAKES, Circuit Judge:

This case raises the question in a Social Security context whether a former bank employee is engaged in a “trade or business” as that term is construed under section 162 of the Internal Revenue Code when he enters into a consulting agreement which provides that he can consult only for his former employer and not for others. The Tax Court has answered the question negatively in a tax context in Barrett v. Commissioner, 58 T.C. 284 (1972), relying on Justice Frankfurter’s formulation in his concurring opinion- in Deputy v. du Pont, 308 U.S. 488, 499, 60 S.Ct. 363, 369, 84…