Glen L. Wittstadt, Jr. and Lynne M. Wittstadt - Page 11

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          had to be made before retirement; and (3) he could have retired             
          without electing to transfer from the Retirement System to the              
          Pension System, under which circumstance he would not have                  
          received a transfer refund.  Therefore, even if such a policy did           
          exist, petitioner acknowledges that only an election to transfer            
          from the Retirement System to the Pension System was necessary in           
          order to receive a transfer refund.  In other words, he need not            
          have retired.  Accordingly, even under the policy that petitioner           
          argues existed, petitioner's Transfer Refund would have been                
          received on account of the election to transfer from the                    
          Retirement System to the Pension System.  This is consistent with           
          Md. Ann. Code, art. 73B, sec. 83(8) (1988), under which we find             
          petitioner transferred from the Retirement System to the Pension            
          System.                                                                     
               As we discussed in Hylton v. Commissioner, supra, and Adler            
          v. Commissioner, supra, there is no causal link under Maryland              
          law between a taxpayer's election to transfer from the Retirement           
          System to the Pension System and a taxpayer's election to retire.           
          Similarly, under Maryland law, there is no causal link between              
          the receipt of the Transfer Refund and a taxpayer's retirement.             
          No such causal link exists because a taxpayer is not obliged,               
          under Maryland law, to transfer from the Retirement System to the           
          Pension System either in order to continue working or in order to           
          retire.  Similarly, under Maryland law, a taxpayer is not obliged           
          to retire upon electing to transfer from the Retirement System to           




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