Milton Dyal v. United States

SPEARS, District Judge:

This is a consolidation of four suits for refund of taxes paid in the years 1956,1957 and 1958.

The taxpayers reported as capital gain in those years all payments received under three 99-year contracts with the Union Bag & Paper Corporation. 1 2 The District Director took the position that the payments were ordinary income, and assessed additional taxes thereon. The usual procedures involving the payment of the additional taxes and the filing of claims for refund by the taxpayers having been followed, and the District Director having failed to make the refunds, these…