Case Name: Lewis K. CATO and Lewis K. Cato, Administrator of the Estate of Johnnie P. Cato, deceased, Plaintiffs-Appellants, v. UNITED STATES of America, Defendant-Appellee; Francis J. DWYER and Wife, Elizabeth C. Dwyer, Plaintiffs-Appellants, v. UNITED STATES of America, Defendant-Appellee
Court: United States Court of Appeals for the Fifth Circuit
Jurisdiction: United States
Decision Date: 1971-04-30
Citations: 442 F.2d 927
Docket Number: No. 31050
Parties: Lewis K. CATO and Lewis K. Cato, Administrator of the Estate of Johnnie P. Cato, deceased, Plaintiffs-Appellants, v. UNITED STATES of America, Defendant-Appellee. Francis J. DWYER and Wife, Elizabeth C. Dwyer, Plaintiffs-Appellants, v. UNITED STATES of America, Defendant-Appellee.
Judges: 
Reporter: Federal Reporter 2d Series
Volume: 442
Pages: 927–927

Head Matter:
Lewis K. CATO and Lewis K. Cato, Administrator of the Estate of Johnnie P. Cato, deceased, Plaintiffs-Appellants, v. UNITED STATES of America, Defendant-Appellee. Francis J. DWYER and Wife, Elizabeth C. Dwyer, Plaintiffs-Appellants, v. UNITED STATES of America, Defendant-Appellee.
No. 31050.
United States Court of Appeals, Fifth Circuit.
April 30, 1971.
David E. Hicks, Birmingham, Ala., for plaintiffs-appellants.
Wayman G. Sherrer, U. S. Atty., Birmingham, Ala., Johnnie M. Walters, Asst. Atty. Gen., Meyer Rothwacks, Chief, Appellate Sec., Stephan Schwarz, Gilbert E. Andrews, Atty., Tax Div., Dept, of Justice, Washington, D. C., for defendant-appellee.
Before TUTTLE, WISDOM and IN-GRAHAM, Circuit Judges.

Opinion:
PER CURIAM:
We conclude that it would require an extreme distortion in both legislative policy and the language effecting it to hold that the trial court erred in holding in favor of the United States in this federal income tax case by directing a verdict for the government.
We agree with the trial court that the gain portion of sums withdrawn by the taxpayers from pledged savings accounts assigned to them do not qualify for long-term capital gains treatment for tax purposes (see Redak v. Commissioner, 27 TCM 1053 [1968]).
The judgment is affirmed.