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open for redetermination if section 6501(e)(1),2 the 6-year
statute of limitations, applies. Section 6501(e)(1) can only
apply if the amount merged from the qualified pension plan to the
unqualified pension plan (the merged amount) is properly
includable in petitioners' income in the year of the merger,
1986. Consequently, we must first decide whether the merged
amount is properly includable in petitioners' 1986 income as a
contribution or by application of the doctrine of judicial
estoppel.3 If the year is open for redetermination, we must also
decide whether contributions made by the corporation to
unqualified pension plans in 1986 on behalf of petitioners are
taxable to petitioners when contributed and whether an increase
in the vested account balance of petitioners in an unqualified
pension plan is taxable to petitioners in 1986, the year of the
increase.
Background
This case was submitted fully
stipulated. All of the facts are stipulated and are so found.
1(...continued)
Respondent states in her brief that plan 2 was qualified. We will treat this
as a concession on respondent's part that plan 2 was qualified.
2 Unless otherwise indicated, all section references are to the Internal
Revenue Code in effect for the year in issue, and all Rule references are to
the Tax Court Rules of Practice and Procedure.
3 Respondent determined in the notice of deficiency that the merged amount
should be treated as a contribution. Respondent's briefs argue that
petitioner should be judicially estopped from denying that the merged amount
is taxable as a contribution. We are not ruling on, and express no opinion
on, whether the merged amount could constitute a distribution.
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