Clair E. Roberts and Betty B. Roberts v. Commissioner of Internal Revenue

MERRILL, Circuit Judge:

The Commissioner has taken this appeal from a decision of the Tax Court respecting the extent of Taxpayer’s taxable income. 1 The question presented is whether gain realized from sales of stock to a trust established by Taxpayer could be reported on the installment method provided by § 453(a)(1) of the Internal Revenue Code of 1954, 26 U.S.C. § 453(a)(1). 2 For the years 1971 through 1973, the Commissioner disallowed installment treatment of Taxpayer’s stock sales and determined deficiencies in payment of income tax amounting to $344,-168.22.

Taxpayer began an…