- 15 -
appreciate petitioners' frustration because, although these
amounts have not differed dramatically, they have not remained
constant throughout the administrative and pretrial stages of
this case. Nevertheless, petitioners ultimately stipulated to
the relevant amounts, and our findings are based on the parties'
stipulation.14
In view of the foregoing, we hold that the Transfer Refund
did not constitute a lump-sum distribution within the meaning of
section 402(e)(4)(A) because petitioner did not receive the
"balance to the credit" when he transferred from the Retirement
14 See supra note 5 and the associated text. We observe
that the Court offered to reopen the record after trial in order
to accommodate a revised stipulation. However, nothing was ever
forthcoming from the parties.
Of perhaps even greater significance is the fact that the
decision to be entered herein will reflect the deficiency as
determined by respondent and not an increased deficiency. See
infra note 17. In this regard we observe that the deficiency as
determined by respondent effectively credits petitioner with
previously taxed contributions in the amount of $22,586.75,
rather than the $21,765.02 amount that was stipulated by the
parties. As shown in the following table, the taxable amount of
the Transfer Refund, based on the amount of petitioner's
previously taxed contributions as credited in the notice of
deficiency, is less than it would be if the stipulated amount
were used:
Taxable Amount of Transfer Refund Taxable Amount of Transfer Refund
Per Notice of Deficiency Per Stipulation
Transfer Refund$158,680.98 Transfer Refund $158,680.98
less: Previously less: Previously
taxed contributions -22,586.75 taxed contributions -21,765.02
Taxable Amount $136,094.23 Taxable Amount 1$136,915.96
1 This amount consists of $136,681.18 of earnings on petitioner's previously taxed
contributions and $234.78 of employer "pick-up" contributions. See supra note 5 and
the associated text.
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