Grant v. Commissioner of Internal Revenue

FRANK, Circuit Judge.

I. As the taxpayer wisely conceded on oral argument in this court, the 1929 agreement, made some 35 days before the divorce suit began, was “incident to” the divorce.1

2. If, without more, Ross, in May 1946, had paid Jane Grant the $10,-720 of arrears due under the 1929 agreement, it would have been indisputable that that sum constituted “periodic payments,” taxable to her under the statute, notwithstanding they were paid in a lump. For delay in making several periodic payments does not change their original character.2 We think the same *433is true here, since the 1946…