J. Truman Ward and Mary M. Ward v. United States

EDWARDS, Circuit Judge.

This is a suit for recovery of income taxes paid under protest. Appellant, J. Truman Ward, 1 sold radio station WLAC to the Life and Casualty Company in 1952 by a written contract which called for a $1,250,000 consideration to be paid to him, plus $30,000 a year in payment for at least 17 years for advisory services and for holding himself available for such advisory services. Appellant paid taxes on these payments as personal income for a number of years. In 1963-65 the Internal Revenue Service found no advisory services were rendered by appellant and refused to allow…