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effect for the year in issue, and all Rule references are to the
Tax Court Rules of Practice and Procedure.
Respondent determined a deficiency in petitioner’s Federal
income tax of $2,226 for the taxable year 1998.
The issue for decision is whether petitioner must include
certain retirement annuity payments in gross income.1
Some of the facts have been stipulated and are so found.
The stipulations of fact and the attached exhibits are
incorporated herein by this reference. Petitioner resided in
Wilmette, Illinois, on the date the petition was filed in this
case.
Petitioner is an attorney and administrative law judge. He
was employed by the Chicago, Milwaukee, St. Paul, and Pacific
Railroad Company (Milwaukee Road) from 1966 until 1980, when his
employment was terminated due to the company’s bankruptcy. As a
result of his employment at Milwaukee Road, petitioner became
vested in benefits in the form of an annuity payable upon
retirement. After petitioner’s employment was terminated in
1Respondent also determined that petitioner received
unreported tier 1 railroad retirement benefits, which for Federal
tax purposes are treated in the same manner as Social Security
benefits. Sec. 86(d)(1)(B). The parties agree that petitioner
received $5,151 of such benefits in 1998, and that they were
reported on petitioner’s tax return, but that they were reported
as pension or annuity income rather than as Social Security
benefits. The portion of these benefits which is correctly
includable in gross income pursuant to sec. 86(a) is
computational and will be determined by our holding on the issue
in this case.
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Last modified: May 25, 2011