Drake v. United States

MEMORANDUM OPINION

GORDON, Senior District Judge.

This income tax refund suit came before the Court for trial on October 10, 1984. Plaintiff taxpayer Howard F. Drake (Drake), formerly an employee of a tax-exempt section 501(c)(3) 1 organization, had, during this employment, participated in a tax-sheltered section 403(b) annuity program. Under this program, Drake directed that a certain amount of his salary be paid as premiums directly to the annuity company and, under section 403(b)(1), these premium amounts were excluded from Drake’s gross income. On December 15, 1978, pursuant to the loan…