- 5 - take care of Mr. Hall, and Mr. and Mrs. Hall were still legally married. For the taxable year 1988, Mr. and Mrs. Hall filed a joint Federal income tax return. They reported a distribution in the amount of $1,027,229 on line 17a of their return and stated that no portion of the distribution was includable in income. The return was signed by both Mr. and Mrs. Hall. Before signing the return, Mrs. Hall briefly reviewed the first 2 pages of the return. She noticed the $1,027,229 entry on line 17a, but she did not question the entry. Mrs. Hall knew that a large distribution was made from the Plan to Mr. Hall during 1988. Of the cash distributed to Mr. Hall, $474,768.81 was transferred from the pension trust account to a newly opened bank account in 1988. The new account was held jointly by Mr. and Mrs. Hall. Both Mr. and Mrs. Hall executed the deposit agreement for the account. In addition, a certificate of deposit held by the Plan was redeemed and the proceeds used to purchase a money market certificate in the amount of $125,331.63 held jointly by Mr. and Mrs. Hall. The balance of the property distributed to Mr. Hall appears to have consisted of real property. OPINION Section 105(a) provides generally that amounts received by an employee through accident or health insurance for personalPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011