Osterman v. Commissioner
United States Tax Court
In 1958, the petitioner purchased the stock of the corporation that employed him and remained with such corporation with increased responsibilities. The corporation maintained an exempt pension trust in which he was a participant, both before and after his purchase. There were some changes in the corporation's business, and in 1962, the petitioner received a lump-sum distribution of his entire interest in the trust.
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In 1958, the petitioner purchased the stock of the corporation that employed him and remained with such corporation with increased responsibilities. The corporation maintained an exempt pension trust in which he was a participant, both before and after his purchase. There were some changes in the corporation's business, and in 1962, the petitioner received a lump-sum distribution of his entire interest in the trust. Held, the petitioner has failed to prove that the distribution to him was "on account of" his "separation from the service" within the meaning of sec. 402(a)(2), I.R.C. 1954, and…
1Opinion of the Court
Simpson, Judge:
The respondent determined deficiencies in the income tax of the petitioners of $1,523.06 for the taxable year 1961 and $5,045.75 for the taxable year 1962. The only issue remaining for decision is whether a distribution received by the petitioner Maurice Osterman in 1962 from an exempt employees’ pension trust was made “on account of” his “separation from the service” within the meaning of section 402(a) (2) of the Internal Revenue Code of 19541 so as to entitle him to capital gains treatment of the distribution.
FINDINGS OF FACT
pSome of the facts were stipulated, and those…
2Cases cited8 opinions
- United States v. Ophelia Johnson and Ophelia R. Johnson, as Under the Last Will and Testament of Clifford L. Johnson, DeceasedCourt of Appeals for the Fifth Circuit · 1964
- United States v. Ben Martin and Rachel T. MartinCourt of Appeals for the Eighth Circuit · 1964
- Harold D. Greenwald and Nana Greenwald, on Review v. Commissioner of Internal Revenue, on ReviewCourt of Appeals for the Second Circuit · 1966
- E. N. Funkhouser and Estate of Nellie S. Funkhouser, Deceased, E. N. Funkhouser v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1967
- Greenwald v. CommissionerUnited States Tax Court · 1965
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- Estate of Stefanowski v. CommissionerUnited States Tax Court · 1974
- Cooper v. CommissionerUnited States Tax Court · 1975
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