Edward D. Rollert Residuary Trust, Genesee Merchants Bank and Trust Company, Trustee v. Commissioner of Internal Revenue

WEICK, Senior Circuit Judge.

Petitioner-Appellant, Edward D. Rollert Residuary Trust, Genesee Merchants Bank and Trust Company, Trustee, (Taxpayer), appeals from a judgment of the Tax Court determining deficiencies in Taxpayer’s income tax for the years 1973, 1974 and 1975. This case presents a question of first impression in the Tax Court and in this circuit concerning the applicability and interaction of section 691 and sections 661 and 662 of the Internal Revenue Code of 1954 (26 U.S. C.). For the reasons hereinafter stated, we affirm the judgment of the Tax Court.

I

The facts of this ease…