Schwab v. Comm'r
United States Tax Court
Ps received life-insurance policies from a nonqualified employee-benefit plan that had surrender charges in excess of their stated values. Ps did not report the distributions on their joint return. R issued a notice of deficiency based on the unreported stated policy values. Held: Pursuant to sec. 402(b), I.R.C., Ps must include in income the fair market value of each of these insurance policies as of the date of distribution.
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Ps received life-insurance policies from a nonqualified employee-benefit plan that had surrender charges in excess of their stated values. Ps did not report the distributions on their joint return. R issued a notice of deficiency based on the unreported stated policy values. Held: Pursuant to sec. 402(b), I.R.C., Ps must include in income the fair market value of each of these insurance policies as of the date of distribution. Held, further, on the facts of this case, the fair market values of these insurance policies properly reflect surrender charges and other conditions imposed on Ps by…
1Opinion of the Court
MICHAEL P. SCHWAB AND KATHRYN J. KLEINMAN, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Schwab v. Comm'r
Docket No. 10525-07.
United States Tax Court
136 T.C. 120; 2011 U.S. Tax Ct. LEXIS 7; 136 T.C. No. 6;
February 7, 2011, Filed
Decision will be entered under Rule 155.
Ps received life-insurance policies from a nonqualified employee-benefit plan that had surrender charges in excess of their stated values. Ps did not report the distributions on their joint return. R issued a notice of deficiency based on the unreported stated policy values. Held: Pursuant to sec. 402(b), I.R.C., Ps…
2Cases cited14 opinions
- United States v. CartwrightSupreme Court of the United States · 1973
- Willcutts v. BunnSupreme Court of the United States · 1931
- United States v. RyersonSupreme Court of the United States · 1941
- Guggenheim v. RasquinSupreme Court of the United States · 1941
- Colorado National Bank v. CommissionerSupreme Court of the United States · 1938
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