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subject to the claims of petitioner's creditors and which
constituted amounts includable in the income of such employee-
beneficiaries as of March 13, 1992.
As a consequence and in accordance with section 1.404(b)-1T,
Temporary Income Tax Regs., neither the vacation nor the
severance pay constituted a deferred compensation plan to which
section 404(a)(5) applies. This being the case, section 83(h)
and section 1.83-6(a)(3), Income Tax Regs., apply, and petitioner
is entitled to deduct the amounts in question in accordance with
its normal accrual method of accounting, i.e., for its fiscal
year ending December 28, 1991.
In order to take into account concessions by petitioner on
other issues,
Decision will be entered
under Rule 155.
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