Francis M. Rogallo and Gertrude S. Rogallo v. United States

WINTER, Circuit Judge:

In a suit by Mr. and Mrs. Francis M Rogallo for a tax refund, the district court entered judgment for the taxpayers. 1 It held that a $35,000 “contribution award” which the Rogallos received from the National Aeronautics and Space Administration (NASA) pursuant to § 306 of the National Aeronautics and Space Act, 42 U.S.C.A. § 2458 (1970), qualified as a prize or award primarily in recognition of scientific achievement and was therefore not includable in the Rogallos’ gross income under IRC § 74(b), 26 U.S.C.A. § 74(b). Appealing, the government contends that § 306…