Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

SUTHERLAND v. EGGER

December 11, 1984

George SUTHERLAND, et al., Plaintiff,
v.
Roscoe L. EGGER, as Commissioner of Internal Revenue for the United States of America and Consolidated Rail Corporation, Defendants



The opinion of the court was delivered by: MCCUNE

 McCUNE, District Judge.

 The plaintiffs in this suit are former employees of the co-defendant, Consolidated Rail Corporation (CONRAIL), who accepted a lump sum payment of up to $25,000.00 from CONRAIL as an incentive to elect early retirement.

 At issue is whether the IRS may tax this lump sum as ordinary income within the calendar year it is received and whether CONRAIL may lawfully withhold a portion of the sum as if earned as wages.

 It is the plaintiff's contention that the language of the Northeast Rail Service Act of 1981 which states:

 
. . . any termination allowance received under § 797(a) of this title shall be considered compensation solely for purposes of --
 
(1) the Railroad Retirement Act of 1974 . . . and
 
(2) determining the compensation received by such employee in any base year under the Railroad Unemployment Insurance Act . . .,

 45 U.S.C. § 797d(b), specifically excludes the severance payments from gross income.

 The defendants *fn1" argue, however, that this court may not reach the merits of this claim since it lacks subject matter jurisdiction. They therefore have moved to dismiss the complaint.

 For the reasons stated below the defendants' motion to dismiss will be granted.

 Procedural History

 Plaintiffs initiated suit by filing a complaint on June 28, 1983. The complaint alleged jurisdiction under 28 U.S.C. § 1346(a)(1) (civil action for recovery of tax erroneously collected) and § 1346(e) (civil action pursuant to 26 U.S.C. § 7426 [action by person other than taxpayer for wrongful levy]).

 The plaintiffs sought certification of a class action and relief in the form of a declaratory judgment directing the federal income tax on the lump sum distribution to be apportioned over a period of 20 years, and injunctive relief directing the IRS to refund the excess ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.