- 3 - portions of indebtedness owing on petitioner’s credit cards in the event of death, disability, or unemployment.2 Due to the Defense Base Closure and Realignment Commission which closed Kelly AFB in 2001, petitioner lost his employment at Kelly AFB on November 6, 2000. Because of petitioner’s unemployment, petitioner satisfied one of the contingencies provided by the credit card insurance policies he carried. Thus, petitioner applied for insurance benefits pursuant to the credit card insurance policies from American Security and Capital One. Petitioner remained unemployed for most of 2001. Accordingly, payments were made during 2001 by American Security and Capital One to the banks that had issued the credit cards in partial payment of amounts due by petitioner on his credit cards. During 2001, petitioner owed approximately $45,000 in credit card debt. Pursuant to the terms of the credit card insurance contracts, American Security paid $11,396 to the applicable bank in partial payment of petitioner’s credit card debt and Capital One paid $4,448 to the applicable bank in partial payment of petitioner’s credit card debt. As a result of paying petitioner’s credit card obligations, American Security and Capital One reported these payments to the Internal Revenue 2The record does not reflect the amounts paid as premiums for such insurance or how such premiums were paid.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011