Cottage Savings Assn. v. Commissioner

Justice Blackmun,

with whom Justice White joins, concurring in part and dissenting in part in No. 89-1926, post, p. 573, and dissenting in No. 89-1965.

I agree that the early withdrawal penalties collected by Centennial Savings Bank FSB do not constitute “income by reason of the discharge ... of indebtedness of the taxpayer,” within the meaning of 26 U. S. C. § 108(a)(1) (1982 ed.), and that the penalty amounts are not excludable from Centennial's gross income. I therefore join Part III of the Court’s opinion in No. 89-1926.

*569I dissent, however, from the Court’s conclusions in these two cases…