George and Elam Campbell - Page 22

                                                - 22 -                                                   

            legislation itself.  In enacting and amending the IRA provisions                             
            in 1974 and 1986, respectively, it is clear that Congress                                    
            intended to encourage retirement savings and the retention of                                
            those savings for retirement use.  If denied favorable tax                                   
            treatment in this situation, petitioners will face retirement                                
            without a large portion of petitioner's retirement savings, thus                             
            creating the very situation that Congress sought to avoid by                                 
            enacting the IRA provisions in the first place.  See Adler v.                                
            Commissioner, 86 F.3d 378, 381 (4th Cir. 1996), vacating and                                 
            remanding T.C. Memo. 1995-148.                                                               
                  Finally, petitioners contend that respondent's                                         
            interpretation of section 72(e)(6) should be resisted because                                
            otherwise it would lead to petitioner's retirement distribution's                            
            being taxed twice.  We think petitioners' contention is                                      
            meritorious.  Here we take note of the long-standing principle                               
            that double taxation is to be avoided unless expressly intended                              
            by Congress.  E.g., Maass v. Higgins, 312 U.S. 443, 449 (1941);                              
            United States v. Supplee-Biddle Hardware Co., 265 U.S. 189, 195-                             
            196 (1924); Tennessee v. Whitworth, 117 U.S. 129, 137 (1886);                                
            Verkouteren v. District of Columbia, 433 F.2d 461, 469 (D.C. Cir.                            
            1970).  Nothing in section 72(e)(6) suggests that petitioner's                               
            retirement distribution should be taxed twice.  As previously                                
            discussed, such intent is also conspicuously absent in the                                   
            pertinent legislative history.                                                               





Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011