Once again, we'll have to let the lawyers fight it out, but whoever prevails in this case, it should by now be clear that the widespread practices of double-dipping
are antithetical to common sense and sound fiscal practice.
First, the Hutchinson decision was not uniformly accepted by all judges and second, even those judges who accepted the reasoning of Justice Marshman were left with the qualifying statement that double-dipping
was still a possibility in some cases.
The system is so lax, and the stakes so high, it's even chafing at Secretary Watkins, who has uttered plans to eliminate such double-dipping
. Yet an examination of the agency's recnet actions suggests that cleaning up the program may be as difficult as cleaning up Fernald.
He said he strongly objects to the double-dipping
loophole, but he doesn't think it's fair to cut people off who were "legally entitled to take advantage of it."
In halting the practice, the city charged that it was "double-dipping
," and that it would not have been tolerated had the city known about it.
Although TEI welcomes the clarification, we recommend that a 5-year certification period be adopted, not only because the shorter time period should be sufficient to deter any perceived double-dipping
of losses and deductions, but also because it is consistent with the recent amendment to the section 367(a) regulations, reducing the length of the required gain recognition agreement from 10 years to 5.
You save the cost of hiring an accountant to value the pension, and it prevents the whole double-dipping
dilemma from ever arising.