Elaine S. Bennett - Page 14

                                       - 14 -                                         

               taken into account in applying the tax.  All other                     
               amounts not specifically exempted are taken into                       
               account.  [H. Conf. Rept. 99-841, 1986-3 C.B. (Vol. 4)                 
               477; emphasis added.]                                                  
          See also Staff of Joint Comm. on Taxation, General Explanation of           
          the Tax Reform Act of 1986, 754-760 (J. Comm. Print 1987).                  
               The above quoted passages from the congressional reports               
          regarding section 4980A demonstrate that Congress intended to               
          include, within the statutory definition of "retirement                     
          distributions", all distributions from qualified plans, except              
          those specifically excluded by the statute.  Because the taxable            
          portion of petitioner's Transfer Refund is not a type of                    
          distribution that is specifically excluded by the statute, it               
          therefore follows that the taxable portion of such Refund was               
          intended by Congress to come within the definition of a                     
          "retirement distribution" for purposes of section 4980A.                    
               F.  Section 4980A(f)                                                   
               To the extent that petitioner may rely on section 4980A(f),            
          it is clear that such section does not serve to relieve                     
          petitioner from liability for the excise tax under section                  
          4980A(a).  Here we observe that section 4980A(f) is a                       
          "grandfather" provision that authorizes an exemption of accrued             
          benefits in excess of $562,500 on August 1, 1986.  Subsection (f)           
          of such section requires that an election be made with respect to           
          an eligible individual in order to have the subsection apply.               
          See sec. 4980A(f)(1), (5).  However, petitioner has not made the            




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011