- 2 -
The issues for decision are: (1) Whether the proceeds of
loans received from a qualified employer plan are distributions
and, therefore, taxable income to petitioner; (2) whether
petitioner must include in income a State income tax refund; and
(3) whether petitioner is liable for the accuracy-related penalty
under section 6662(a).2
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulated facts and the related exhibits are incorporated
herein by this reference. At the time of filing the petition,
petitioner resided in the Bronx, New York.
Petitioner has been employed by the City of New York for
more than 38 years as an assistant engineer. Petitioner
participated in the New York City Employees’ Retirement System
(NYCERS) plan (the plan), a qualified employer plan. Employees
were permitted to borrow from the plan. The loan application
stated that “the balance outstanding on any existing loan is
combined with the new cash loan and establishes a new loan.” The
loans were repaid in biweekly payroll withholdings. Employees
1(...continued)
all Rule references are to the Tax Court Rules of Practice and
Procedure.
2 The notice of deficiency contains adjustments to
petitioner’s itemized deductions. These are computational
adjustments which will be affected by the outcome of the other
issues to be decided, and we do not separately address them.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011