Bohner v. Commissioner
United States Tax Court
While P worked for the Federal Government, he participated in the Civil Service Retirement System (CSRS). After P retired, he received a letter explaining that he could elect to increase his CSRS retirement annuity by remitting a fixed sum. P remitted the funds to CSRS. Because P did not have sufficient funds in his bank account, he borrowed a portion of the fixed sum.
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While P worked for the Federal Government, he participated in the Civil Service Retirement System (CSRS). After P retired, he received a letter explaining that he could elect to increase his CSRS retirement annuity by remitting a fixed sum. P remitted the funds to CSRS. Because P did not have sufficient funds in his bank account, he borrowed a portion of the fixed sum. P paid off the loan and replenished his bank account by making withdrawals from his traditional individual retirement account (IRA). P did not report any of the amounts he withdrew from his IRA as taxable income. P contends…
1DissentBuch, J.
The opinion of the Court turns on the question of whether CSRS accepts rollovers, yet in that opinion a majority of the Court candidly states that “there is no specific provision in the Internal Revenue Code concerning whether a qualified trust must accept a rollover that is an indirect transfer from an IRA in order to constitute an eligible retirement plan for purposes of section 408(d)(3)”. See op. Ct. p. 228. They then go on to create such a rule.
This may or may not be a good or wise rule, but that should be irrelevant. It is not our role to act as rulemaker. Indeed, on the same day the…
2Cases cited33 opinions
- Atlantic Cleaners & Dyers, Inc. v. United StatesSupreme Court of the United States · 1932
- Badaracco v. CommissionerSupreme Court of the United States · 1984
- BedRoc Limited, LLC v. United StatesSupreme Court of the United States · 2004
- Woodral v. CommissionerUnited States Tax Court · 1999
- Rauenhorst v. Comm'rUnited States Tax Court · 2002
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