United States Tax Court November 26, 1985, Docket No. 25477-82 (Colonial Sav. Asso. v. Commissioner)

lead-opinion

Gerber, Judge:

Respondent determined a deficiency of $5,000 in petitioners’ taxable year ended June 30,1980. Due to an agreement of the parties,1 the sole issue for our consideration is whether income received by financial institutions as penalties for premature withdrawal is to be treated as income from discharge of indebtedness within the meaning of section 108.