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year period. Revenue Reconciliation Act of 1993, Pub. L.
103-66, sec. 13261(a), 107 Stat. 312, 533.
Covenant Not To Compete
In this case, the seller was 65 years of age at the
time he entered into the subject agreement with petitioner.
He was not only suffering from the abdominal aortic
aneurysm that led to his death, but he also had other
health problems, including a colostomy and an infection of
the epididymis. The seller's actions are consistent with
the actions of a person who intended to permanently retire
due to age and health problems. Nothing in the record
suggests otherwise. In fact, the agreement makes express
reference to the fact that the seller had "severe and life
threatening health problems which are imminent", it fails
to provide that petitioner's payments would cease in the
event of the seller's death or inability to practice
accounting, and it makes reference to the fact that the
seller planned to assign the payments to a family trust.
Petitioners attempt to minimize the severity of the
seller's health problems. They argue that the surgery to
correct the seller's aortic aneurysm "was elective and not
mandatory" and they point out that a letter written by the
seller's physician states that the risk of death from the
operation was 1 percent. However, we are not persuaded by
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