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Securities Exchange Act of 1934, ch. 404, 48 Stat. 896, “such
person’s rights in such property are (A) subject to a substantial
risk of forfeiture”. Section 83(c)(3) does not apply beyond the
initial 6-month period provided in section 16(b) of the
Securities Exchange Act of 1934. Tanner v. Commissioner, supra
at 245-256.
Petitioner does not claim that he would have been subject to
liability under section 16(b) of the Securities Exchange Act of
1934.
A taxpayer’s right to his shares of stock may be subject to
a substantial risk of forfeiture if his rights to full enjoyment
of the shares of stock is conditioned upon the future performance
of substantial services. Sec. 83(c)(1). The record is devoid of
any facts that show petitioner’s right to full enjoyment of his
shares of Exodus stock was conditioned upon the future
performance of substantial services.
Petitioner alleges his shares of Exodus stock were subject
to a substantial risk of forfeiture and not freely transferable
because they were blacked out from trading by reason of Exodus’s
insider trading policy. In his brief, petitioner relies on
Robinson v. Commissioner, 805 F.2d 38 (1st Cir. 1986), revg. 82
T.C. 444 (1984).
The Court of Appeals for the First Circuit in Robinson v.
Commissioner, supra at 40-41, held that a taxpayer’s shares of
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