Tax Type
Individual Income Tax
Description
Lump-sum retirement payments
Topic
Returns/Payments/Records
Taxable Income
Date Issued
12-28-1992
December 28, 1992
Re: Protective Claim: Individual Income Tax
Dear***********
This will acknowledge receipt of your amended return through which you submit a protective claim for refund of taxes paid for taxable year 1988 on a federal retirement pension disbursement. This issue had been the subject of litigation before the federal courts, yet has been resolved.
In April 1992, the U. S. Supreme Court denied review of an earlier Claims Court decision which held that a lump-sum payment received by a person from the Civil Service Retirement System, after commencement of his retirement annuity, was includible in his income and subject to taxation as an amount received under an annuity contract. Thus, the decision required no change in the federal, and thus state, tax treatment of lump sum retirement payments.
Accordingly, your request for a protective claim for a refund of taxes paid on a federal retirement pension disbursement is denied.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/6397H
Rulings of the Tax Commissioner