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pay to Dr. Domingo his requested severance benefits totaling
approximately $220,000.
XVI. Dr. DeAngelis’s Receipt of Plan Benefits
Dr. DeAngelis filed a claim for severance benefits with STEP
in November 2002. In connection therewith, Dr. DeAngelis on
November 19, 2002, signed a “Request for Payment of Benefits”
stating that he was terminating his services because of “prostate
cancer, with symptoms which interfere with employee’s ability to
perform surgery” and that his compensation for the 12-month
period before his termination of service was approximately
$350,000. Dr. DeAngelis underwent radiation and incurred
radiation colitis to try to treat his prostate cancer and
continued to work until December 31, 2003.
Wayne Bursey (Mr. Bursey), the president of SPSI, approved
the claim. Mr. Bursey was concerned about the possibility of
future litigation between Dr. DeAngelis and STEP, insofar as Drs.
DeAngelis and Domingo had threatened suit against the prior plan
administrator but had never instituted any such litigation.
OPINION
I. Overview
We are faced once again with an issue arising from a plan
designed aggressively to bolster the sale of insurance products
through a claim of permissible tax savings. Cf. Neonatology
Associates, P.A. v. Commissioner, 115 T.C. 43, 99 (2000), affd.
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