George & Hazelann Tateosian, (2008)
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George & Hazelann Tateosian, (2008)
T.C. Memo. 2008-101
UNITED STATES TAX COURT GEORGE AND HAZELANN TATEOSIAN, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 13019-05. Filed April 16, 2008.Thomas E. Brever, for petitioners. Lisa R. Woods, for respondent.MEMORANDUM OPINION KROUPA, Judge: Respondent determined a $10,085 deficiency in petitioners' Federal income tax and a $2,017 accuracy-related penalty for 2003. Two issues are presented for our decision. The first is whether certain payments that petitioner received from the Public Employees Retirement Association of Minnesota -2(PERA) are disability payments and excludable from gross income or pension payments and includable. We hold that they are includable in income. The second issue is whether petitioners are liable for the accuracy-related penalty under section 6662(a).1 We hold that they are not.Background This case was submitted fully stipulated pursuant to Rule 122. The stipulation of facts and the accompanying exhibits are incorporated by this reference. Petitioners resided in St. Paul, Minnesota at the time their petition was filed.George Tateosian (petitioner) was born on October 28, 1927, and became a member of the Saint Paul Police Department in 1955. By reason of an injury sustained in the line of duty, he was permanently disabled on June 18, 1959, after fewer than 5 years of service. The St. Paul Police Relief Association (SPPRA) awarded petitioner an on-duty-disability pension on August 1, 1960. Initially, petitioner's disability payment was determined without regard to his age or length of service. Petitioner began receiving disability benefits in the sum of 40 units per month under this regimen in 1960. A 'unit' was defined as 'one-hundredth of the current maximum monthly pay of a police officer -3in the police service of the city.' Petitioner's ...See the full content of this document
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