- 4 - In 1989 and 1990, petitioner received distributions pursuant to the Plan of $654,964 and $136,749, respectively (collectively, the plan distributions). The plan distributions equaled 100 percent of petitioner’s accrued benefits under the Plan. Petitioner did not report the plan distributions as items of gross income on petitioners’ joint 1989 and 1990 Federal income tax returns. There were no writings concerning any determination by the Committee that petitioner was totally and permanently disabled. The Committee determined that petitioner was totally and permanently disabled on or about November 7, 1989. On February 20, 1986, the corporation had filed with the Internal Revenue Service a Form 5300, Application for Determination for Defined Benefit Plan For Pension Plans Other Than Money Purchase Plans. On June 2, 1987, the Internal Revenue Service issued a favorable determination letter (the determination letter). OPINION I. Introduction The only question we must decide is whether the plan distributions constitute items of gross income to petitioner. Petitioners claim that the Plan was a dual purpose plan providing both retirement and disability benefits and that the plan distributions were disability payments excludable from grossPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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