Estate of James F. Hall, Jr., Deceased, Harriet Hall, Executrix, and Harriet Nixon Hall - Page 7

                                        - 7 -                                         
          Despite this broad definition, we have long held that the term              
          "accident or health plan" presupposes a predetermined course of             
          action and that it signifies something more than merely one or              
          more ad hoc benefit payments.  Gordon v. Commissioner, 88 T.C.              
          630, 635 (1987); American Foundry v. Commissioner, 59 T.C. 231,             
          238-239 (1972), affd. in part and revd. in part 536 F.2d 289 (9th           
          Cir. 1976); Lang v. Commissioner, 41 T.C. 352, 356-357 (1963);              
          Estate of Kaufman v. Commissioner, 35 T.C. 663, 666 (1961), affd.           
          300 F.2d 128 (6th Cir. 1962).                                               
               Generally, deferred compensation plans and accident or                 
          health plans serve distinct purposes.  Deferred compensation                
          plans are designed to remunerate an employee for services                   
          rendered over a substantial period of time.  Accident or health             
          plans, on the other hand, provide payments to employees in the              
          event of illness or injury, without regard to such factors as               
          compensation, length of service, and company profitability.                 
          Thus, in order to come within the scope of section 105,                     
          petitioners must show by "clear indicia" that the deferred                  
          compensation plan in question was intended to serve the dual                
          purpose of providing accident or health benefits as well as                 
          retirement benefits.  Berman v. Commissioner, 925 F.2d 936, 938-            
          939 (6th Cir. 1991), affg. T.C. Memo. 1989-654; Caplin v. United            
          States, 718 F.2d 544, 549 (2d Cir. 1983); Gordon v. Commissioner,           
          supra at 640.                                                               






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011