- 10 - would not be paid pursuant to "plans" under section 404(b), they would not be described in section 404(a)(5), and thus section 1.162-10(a), Income Tax Regs., would not apply, and petitioner would be entitled to its deduction under section 83(h) and section 1.83-6(a)(3), Income Tax Regs. According to the regulations, if the benefits in question were not "received" within the 2-1/2 month period, it is presumed that the amounts would be deferred compensation, they would be paid pursuant to "plans" under section 404(b), they would be described in section 404(a)(5), and then section 1.162-10(a), Income Tax Regs., would apply, sending us back to section 404(a)(5) for the deductibility of the amounts. The parties have stipulated that the amounts specified in the letter of credit were includable in the employees' gross income under section 83 as of the date of transfer. Petitioner maintains that since the amounts were vested, funded, and includable within the 2-1/2 month period, they must have been "received" within that period for purposes of section 1.404(b)- 1T, Temporary Income Tax Regs. Respondent contends that mere includability in income is not enough, that "received" requires that the employee must have been able to put the amount included "in his pocket" for the 2-1/2 month "window" under the 9(...continued) For an illuminating discussion of the correlation between 2-1/2 months and 75 days see Mansuss Realty Co. v. Commissioner, 143 F.2d 286 (2d Cir. 1944), affg. 1 T.C. 932 (1943).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011