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Kenneth M. Barish, James R. McDaniel, and Bruce L. Ashton,
for petitioner.
Paul B. Burns, for respondent.
GERBER, Judge: Respondent alternatively determined a
$540,716 income tax deficiency and a $135,179 addition to tax
under section 66611 for the 1985 tax year, or a $537,808 income
tax deficiency and a $107,562 addition to tax under section 6661
for the 1986 tax year. The issues remaining for our
consideration are: (1) Whether petitioner’s waiver of his
pension plan benefits and use of them by his wholly owned
corporation resulted in a taxable distribution to him; (2) if it
is a taxable distribution, whether it is recognizable in 1985 or
1986; and (3) whether petitioner is liable for an addition to tax
under section 6661.
FINDINGS OF FACT2
Petitioner resided in Fontana, California, at the time of
the trial of these consolidated cases. Petitioner was married to
Adele M. Gallade (ex-wife) during the period under consideration,
except for an interim period when they were divorced (January 20
1 Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for the years at issue, and the
Rule references are the Tax Court Rules of Practice and
Procedure.
2 The stipulation of facts and exhibits are incorporated
herein by this reference.
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