A ft erexami ni ng t he br i efs and appe l l at e r ecor d, t hi s panel has det erm i ned * unani m ous l yt hator al ar gum entw oul d notm at er i al l yas s i s tt he det erm i nat i on of th is a p p e a l. See F e d . R . A p p . P . 3 4 (a )(2 ); 1 0 th C ir. R . 3 4 .1 (G ). T h e c a se is th e re fo re o rd e re d su b m itt e d w ith o u t o ra l ar g u m e n t. T h is o rd e r a n d ju d g m e n t is notbi ndi ng pr ece dent , exce ptundert he doctr i nes of l aw of the ca s e, r es j udi cat a, and col l at er al es t oppel . T he courtgener al l ydi s favor s t he ci t at i on of or der s and j udgm ent s ; nevert hel es s , an or derand j udgm entm aybe ci t ed undert he t erm s and condi t i ons of 10th C i r . R . 36. 3. 

## F I LED United States C ourt of Appeals Tenth Circuit 

### M ay19,2006 Elisab eth A. Shumaker C l erk of C ourt UNI TED S TATES CO URT O F AP PEALS F O R T H E T E N T H C IR C U IT RO GE R L E S L I E WOLMAN; CA RO L I NE R. WOLMAN, P et i t i on ers -A pp el l ants , v. CO M M I S S I ONE R O F I NT E RN AL REV ENU E, R es pondent - A ppel l ee. N o. 05- 9001 ( T . C . N o. 18953- 02) (T a x C o u rt)

ORDE R AND J UDGM EN T * B efor e M c CO NNELL , AN DE RS ON , and BA LD OCK , C i rcui tJudg es. I n 1994, pet i t i onerR ogerL es l i e W ol m an w on $1, 500, 000 i n the C ol or ado l ot t ery , pay abl e i n t w enty - fi ve annua l i ns t al l m ent s . M r . W ol m an and hi s w i fe, p eti ti o n er C aro li n e R . W o lm an , rep o rt ed the fir st five p ay m en ts as o rdin ary in c o m e o n th e ir fe d e ra l tax re tu rn s. In 1 9 9 8 , M r. W o lm a n so ld h is rig h t to- 2-

r ece i ve the r emai ni ng l ot t eryi ns t al l m entpaym ent s t o C api t al Fi r s tFi nanci ng C orp. i n excha nge fort w o l um p s um paym ent s , pay abl e i n 1998 and 1999. T he W ol m ans r epor t ed thi s s al e on thei r1998 and 1999 t ax r eturns as the s al e of a c a pi t a l a s s e tr e s ul t i ng i n a c a pi t a l ga i n. The I nt e rna l Reve nu e Se r vi c e ( I RS) i s s ued the W ol m ans a not i ce of defi ci encyforthos e tw o y ear s , det erm i ni ng t he lum p su m p ay m en ts r ec eive d fo r th e a ssign m en t of the righ t t o the f

u ture lott ery i ns t al l m entpaym ent s w as t axabl e as or di naryi ncome. T he W ol m ans fi l ed a p eti ti o n w ith the T ax C o u rtd ispu ti n g the IR S ’s de term ination . T h e T ax C o u rt ag ree d w ith the IR S an d h eld th at th e lum p su m am o u n ts co n sti tuted o rdin ary in c o m e a n d n o t c a p ita l g a in s . Wo lm a n v. C o m m ’r , T. C. M e mo . 2 0 0 4 - 2 6 2 ( T. C. 2004) . A ft ert he Tax C our tdeni ed the W ol m ans ’ m ot i on t o vaca t e orr evi s e the d e c is io n , th e ya p p e a le d . O n appea l , t he W ol m ans cont i nue t o ar gue thatthe moneyr ece i ved fr om C api t al Fi r s tFi nanci ng i n 1998 and 1999 w as l ong t erm capi t al gai n and not or di naryi ncome. T hi s courtr ece nt l ycons i der ed and r ej ect ed thi s ar gum enti n a c a s e p re s e n tin g v e ry si m ila r fa c ts . S ee Wa tki n s v. C o m m ’r , N o. 04- 9016, ___ F. 3d ___, 2006 W L 1266530 ( 10th C i r . M ay10, 2006) . Forthe s ame r eas ons s t at ed i n Watki ns , w e r ej ectt he W ol m ans ’ ar gum entand hol d thatthe l um p s um p a ym e n ts w e re ta x a b le a s o rd in a ry in c o m e . T h e W o lm a n s a lso a rg u e th a t M r. W o lm a n m a d e a c a p ital in v e stm e n t in lo tte ry tic k e ts in e x c e s s o f $ 4 0 0 0 f ro m J a n u a ry 2 8 , 1 9 8 9 th ro u g h A p ri l 2 , 1 9 9 4 .- 3-

T heycont end thatt hi s “i nves t m ent ” makes the r i ghtt o the l ot t eryi ns t al l m ent p ay m en ts a ca p it al asse t. W e reject th is argu m en t. T h e p u rch ase o f lo tt ery tic k e ts is n o t a n u n d e rl y in g in v e s tm e n t o f c a p ita l. See Watki ns , 2 0 0 6 WL 1 2 6 6 5 3 0 , at *3 n . 4 . A lso, ne ith er M r. W o lm an ’s pu rch ase o f a co m p u ter, p ri n ter, and a l ot t erycomput erpr ogr am nor the t i m e he s pentm aki ng hi s l ot t erypi cks w e re c a p ita l in v e s tm e n ts . A c c o rd in g ly, w e A F F IR M th e ju d g m e n t o f th e T a x C o u rt . E n tered fo r th e C o u rt

St ephen H . A nder s on C i r cui tJ udge