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respondent argues that the distribution of decedent's pension was
income in respect of a decedent under section 691(a)(1)(A) and
thereby taxable to the estate, which acquired the right to
receive the amount. Third, respondent argues that the estate was
in actual or constructive receipt of the income, and under the
claim of right doctrine, it must include the distributions in the
years of receipt. Respondent contends that the estate's use of
the pension funds, via the temporary administrator's use of the
funds, was not subject to substantial restrictions for tax
purposes.
We must first resolve whether the distributions fall within
section 402(a)(1) and are thereby covered by its rule. The
estate argues that the temporary administrator is not a
"distributee" within the meaning of section 402(a)(1) and
therefore that the delivery of pension funds to the temporary
administrator does not constitute a taxable event. Citing
Darby v. Commissioner, 97 T.C. 51, 58 (1991), the estate contends
that the term "distributee" is limited to employee/plan
participants or their beneficiaries; and because no beneficiary
has been determined, no distributee received the pension funds.
Respondent argues that the estate is the "distributee" of the
funds transferred from the custodian to the temporary
administrator Mr. Corn.
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