James A. Wood and Dorothy D. Wood v. United States

MERRILL, Circuit Judge:

James A. and Dorothy D. Wood 1 brought this suit seeking to recover $17,985.45 in income taxes paid for the calendar year 1972. The question presented is whether the lump sum received by taxpayer upon termination of his employment due to disability should be included in gross income. The district court ruled that it should not, and the government has taken this appeal. We affirm.

Taxpayer was employed by Peninsula Newspapers, Inc., and was a member of a profit-sharing plan and trust that qualified as such under 26 U.S.C. § 401(a). The company was the sole contributor to…