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Petitioner does not dispute the accuracy of respondent's
calculation. Rather, petitioner argues that, if he had, as he
should have, received the payments from the Postal Service
ratably over the years for which they were paid (1988 to 1994),
he would have paid no tax on the Social Security benefits
received in 1994 because his income would not have exceeded
either the "base amount" or the "adjusted base amount". Thus,
the "bunching" of the Postal Service income produces this
anomalous situation.
Petitioner's chagrin and frustration may be understandable.
Nonetheless, we must apply the statutes as Congress wrote them
and we do not have the power to rewrite section 86 to avoid this
anomaly. See Huntsberry v. Commissioner, 83 T.C. 742, 747-748
(1984). Unfortunately for petitioner Congress did not ameliorate
the effect of the "bunching" of income from other sources when it
enacted section 86. Accordingly, respondent's determination must
be sustained.
Decision will be entered
for respondent.
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Last modified: May 25, 2011