Irwin B. Schwabe Co. v. Commissioner
United States Tax Court
Petitioner's employees' pension plan, administered by a trust, was inaugurated in the year 1944. The plan was funded through the purchase from a mutual insurance company of individual level annual premium annuity or endowment policies on the lives of the employees. In the year 1946 one of petitioner's employees who was covered by the plan resigned her position and, in accordance with the provisions of the plan, forfeited all benefits thereunder.
Read the full summary
Petitioner's employees' pension plan, administered by a trust, was inaugurated in the year 1944. The plan was funded through the purchase from a mutual insurance company of individual level annual premium annuity or endowment policies on the lives of the employees. In the year 1946 one of petitioner's employees who was covered by the plan resigned her position and, in accordance with the provisions of the plan, forfeited all benefits thereunder. Her policy was canceled and the cash surrender value was paid to the trustees. Held, that the clear and unambiguous provisions of the pension plan…
1Opinion of the Court
OPINION.
Hill, Judge:
The sole issue presented for decision concerns the question whether the petitioner is entitled to deduct the full amount it contributed to a trust to cover the cost of premiums due on insurance policies purchased to effectuate its employees’ pension plan, or whether the amount, of this deduction is to be reduced by the cash surrender value of a canceled policy acquired and held by the trustees of the plan, which policy was canceled when one of petitioner’s employees quit her position and forfeited all benefits under the plan.
The applicable provision of the Internal Revenue…
2Cases cited1 opinion
- Wooster Rubber Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1951
3Cited by9 opinions
- Wilson v. CommissionerUnited States Tax Court · 1962
- McClintock-Trunkey Co. v. CommissionerUnited States Tax Court · 1952
- Dallas Dental Lab, Inc. v. CommissionerUnited States Tax Court · 1979
- Dallas Dental Lab, Inc. v. CommissionerUnited States Tax Court · 1979
- Irwin B. Schwabe Co. v. CommissionerUnited States Tax Court · 1952
4 more not listed; retrieve them via the Exa API.