Harold D. Greenwald and Nana Greenwald, on Review v. Commissioner of Internal Revenue, on Review

MOORE, Circuit Judge:

This is a petition for review of a decision of the Tax Court, Raum, J., 44 T.C. 137 (1965), holding that a profit-sharing trust for salaried employees of a company, although originally tax-exempt, had lost its tax-exempt status by reason of radical changes in the nature of the company, so that lump-sum distributions from the trust should have been taxed as ordinary income, rather than as capital gains, as reported by petitioners.

Petitioners, Harold D. Greenwald and Nana Greenwald, husband and wife, filed joint income tax returns for the years 1958, 1959 and 1960 with the…