Kosmal v. Commissioner

1979 T.C. Memo. 490, 39 T.C.M. 651, 1979 Tax Ct. Memo LEXIS 34
CourtUnited States Tax Court
DecidedDecember 6, 1979
DocketDocket No. 5637-78.
StatusUnpublished

This text of 1979 T.C. Memo. 490 (Kosmal v. Commissioner) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kosmal v. Commissioner, 1979 T.C. Memo. 490, 39 T.C.M. 651, 1979 Tax Ct. Memo LEXIS 34 (tax 1979).

Opinion

EDWARD J. KOSMAL, AND NILI H. KOSMAL, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Kosmal v. Commissioner
Docket No. 5637-78.
United States Tax Court
T.C. Memo 1979-490; 1979 Tax Ct. Memo LEXIS 34; 39 T.C.M. (CCH) 651; T.C.M. (RIA) 79490;
December 6, 1979, Filed
Edward J. Kosmal, pro se.
Darwin R. Thomas, for the respondent.

DAWSON

MEMORANDUM FINDINGS OF FACT AND OPINION

DAWSON, Judge: Respondent determined the*35 following deficiencies in petitioners' Federal income taxes:

YearDeficiency
1974$1,035
19751,390
19761,067

Some concessions have been made by both parties. The issues remaining for decision are:

1. Whether petitioners are entitled to exclude or deduct amounts withheld from the salary of Edward J. Kosmal for contributions to the Los Angeles County Employees Retirement Association in computing their taxable income for the years 1974 through 1976.

2. Whether petitioners are entitled to deduct as ordinary and necessary business expenses under section 162 1 the purchase of Spanish language instruction, clothing, tape recorders and recording accessories.

FINDINGS OF FACT

Some of the facts have been stipulated. The stipulation of facts together with the attached exhibits are incorporated herein by this reference.

Edward J. Kosmal and Nili H. Kosmal, husband and wife, resided in Beverly Hills, California, at the time they filed their petition in this case. They timely filed their joint Federal*36 income tax returns for the calendar years 1974, 1975 and 1976.

Edward J. Kosmal (hereinafter petitioner) was employed from 1974 through 1976 by the County of Los Angeles as a Deputy District Attorney. As an employee of the County, his participation in the Los Angeles County Employees Retirement Association (hereinafter LACERA) was compulsory and nonforfeitable. The LACERA pension plan is organized and operated under California statutes. Cal. Govt. Code §§ 31450 through 31895. Under these laws petitioner was required to contribute a portion of his salary to the plan but was entitled to a refund of his contributions upon the termination of his employment for reasons other than death.

In his Federal income tax returns for the years in issue, petitioner deducted as an adjustment to income the sums of $2,415 in 1974, $2,421 in 1975 and $2,590 in 1976. These amounts represented the required contributions withheld from his salary and paid to LACERA during those years. Respondent disallowed the claimed deductions.

In his position as a Deputy District Attorney the petitioner frequently worked with persons who spoke Spanish. In 1975 he took instruction*37 in Spanish to enable him to interview witnesses and victims involved in criminal cases.

In 1975 the petitioner purchased more expensive business suits because he was then planning to leave government service and enter private law practice.

In 1975 the petitioner purchased and used two cassette tape recorders in interviewing witnesses and victims. He used the tapes to refresh his memory because of the long delay between the interview dates and trial dates. He also recorded various legal seminars with respect to civil and criminal litigation which were helpful in his work as a Deputy District Attorney. He listened to such tapes while driving to and from work.

On his 1975 Federal income tax return petitioner claimed deductions of $125 for the expenses incurred in taking a Spanish language course, $606 for the cost of business suits and clothes, and $531 attributable to the two cassette tape recorders and accessories. Respondent disallowed the expenses as being personal rather business in nature.

OPINION

Issue 1: Retirement Fund Contributions

Petitioner argues that the amounts withheld from his salary and paid to LACERA should be excluded or deducted from his wages*38 in computing taxable income. The identical issue was considered and decided by this Court in Feistman v. Commissioner, 63 T.C. 129 (1974), appeal dismissed 587 F.2d 941 (9th Cir. 1978). There the taxpayer-husband was employed by the County of Los Angeles, and the taxpayer-wife by the Los Angeles City School District. As a condition of their employment, both husband and wife were required by law to participate in the retirement systems of their respective employers. As a result, amounts were withheld each year from their gross wages as employee contributions to their respective retirement funds. The retirement plans were, as in this case, compulsory and nonforfeitable because each taxpayer was required to contribute to the retirement plan from his or her gross wages and each was entitled to a refund of contributions upon termination for reasons othe than death. We held in the Feistman

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Bluebook (online)
1979 T.C. Memo. 490, 39 T.C.M. 651, 1979 Tax Ct. Memo LEXIS 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kosmal-v-commissioner-tax-1979.