Balestra v. United States

PLAGER, Circuit Judge.

Introduction

This is a tax refund case. The Balestras seek &• refund of $3,285.26 for Federal Insurance Contribution Act (“FICA”) tax paid on certain deferred compensation— retirement benefits in this case — that Mr. Balestra will never receive due to his employer’s bankruptcy proceedings.

The tax was based on a calculation of the “amount deferred” under 26 U.S.C. § 3121(v)(2)(A) (2000). Congress did not define the phrase “amount deferred.” Instead, the Department of the Treasury (“Treasury”) promulgated a regulation defining the “amount deferred” in terms of the deferred…