Glen L. Wittstadt, Jr. and Lynne M. Wittstadt - Page 12

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               On March 8, 1995, the Court filed its memorandum opinion in             
          Dorsey v. Commissioner, T.C. Memo. 1995-97.8  Once again, we                 
          relied heavily on Hylton v. Commissioner, supra, in holding that             
          the taxpayer's Transfer Refund was not received on account of the            
          taxpayer's retirement, but rather on account of the taxpayer's               
          election to transfer from the Retirement System to the Pension               
          System.                                                                      
               On April 4, 1995, the Court filed Adler v. Commissioner,                
          T.C. Memo. 1995-148, revd. 86 F.3d 378 (4th Cir. 1996).   That               
          case, which was decided after a trial at which a representative              
          of the Maryland State Retirement Agency testified, presented                 
          facts virtually indistinguishable from those in the present case.            
          Thus, in Adler, the taxpayer, a Maryland State employee, elected             
          to transfer from the Retirement System to the Pension System,                
          effective June 1, 1990.  The taxpayer also applied to retire,                
          effective July 1, 1990.  Thereafter, the taxpayer received a                 
          Transfer Refund.  Applying the same analysis as in Hylton v.                 
          Commissioner, supra, we held in Adler that the taxpayer did not              
          receive the Transfer Refund on account of his retirement, but                
          rather on account of his election to transfer from the Retirement            
          System to the Pension System.                                                

               8    The taxpayer's appeal in Dorsey was ultimately                     
          dismissed.  Dorsey v. Commissioner, 91 F.3d 129 (4th Cir. 1996).             







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