- 16 -
On October 22, 1996, respondent filed a notice of Federal
tax lien in the county of petitioners' residence. Also, by
notice dated December 25, 1996, respondent reminded petitioners
that their next payment pursuant to the installment payment
agreement was due on January 8, 1997.
K. The Adler Case on Appeal
On June 21, 1996, the Court of Appeals for the Fourth
Circuit decided Adler v. Commissioner, 86 F.3d 378, which vacated
and remanded our decision in T.C. Memo. 1995-148. In Adler v.
Commissioner, the Court of Appeals agreed that the phrase "on
account of" requires "a causal connection between the employee's
separation from service and the distribution from the qualified
plan." 86 F.3d at 380. However, the Court of Appeals construed
the phrase "on account of" to mean "incident to" and concluded
that the requisite degree of causality required by the operative
statute had been satisfied. In so holding, the Court of Appeals
stated: "As the purpose of the statute [section 402] is to
protect and encourage retirement savings, it is plain that a
distribution to an employee that occurs incident to his
retirement should be entitled to rollover treatment." 86 F.3d at
381.
On September 10, 1996, the Solicitor General of the United
States decided that a petition for a writ of certiorari would not
be filed in respect of Adler v. Commissioner, 86 F.3d 378. Cf.
28 U.S.C. sec. 2101(c)(1994).
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011