- 4 - Petitioners have not explicitly claimed that they should be entitled to a section 31 credit for amounts employer purportedly withheld on Mr. Ackerman’s plan distribution but failed to report. But even if we were to construe petitioners’ claims broadly to encompass such an argument, it would be an argument that this Court lacks jurisdiction to consider. The Court’s jurisdiction in this case is limited to redetermining petitioners’ deficiency, see sec. 6213(a), which the statute requires to be determined “without regard to the credit under section 31". Sec. 6211(b)(1); see Redcay v. Commissioner, 12 T.C. 806, 809-810 (1949); Porter v. Commissioner, T.C. Memo. 1996-475; Joy v. Commissioner, T.C. Memo. 1991-543. Petitioners do not dispute that Mr. Ackerman received at least a $211,916 plan distribution in 2001.2 Accordingly, we sustain respondent’s determination. Petitioners contend alternatively that if employer neglected to withhold Federal income tax on the plan distribution, then only employer is liable for the tax. For the reasons discussed above, petitioners remain obligated to report their items of gross income, notwithstanding employer’s payment or nonpayment of withholding taxes thereon. See Goins v. Commissioner, supra. 2 In fact, the import of petitioners’ argument seems to be that $211,916 was the net plan distribution, after withheld taxes, and that the gross plan distribution was considerably higher. Respondent has not asserted any increased deficiency to reflect any such higher amount of a gross plan distribution.Page: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011