-6-
entitles petitioner to a refund of the excess withholding for
1992, 1993, and 1994.
We disagree. Equitable recoupment does not apply here.
“[A] claim of equitable recoupment will lie only where the
Government has taxed a single transaction, item, or taxable event
under two inconsistent theories.” United States v. Dalm, 494
U.S. 596, 605 n.5 (1990) (citing Rothensies v. Electric Storage
Battery Co., supra). Here, respondent has not used inconsistent
theories of taxation. Thus, equitable recoupment does not apply.
C. Whether Petitioner Is Taxable on the IRA Distribution
A distribution from an IRA is generally includable in income
by the recipient in the year in which the distribution is
received. See sec. 408(d)(1); Aronson v. Commissioner, 98 T.C.
283, 287 (1992).
A distribution was made to respondent from petitioner's IRA
in 1995. Petitioner contends that he is not taxable on the
distribution because he did not receive the funds or benefit
therefrom and because the distribution was involuntary.
Petitioner also contends that respondent improperly levied his
IRA because respondent caused the distribution from the account
to be a lump-sum distribution and not a monthly annuity payment.
We disagree. A taxpayer constructively receives an IRA
distribution when his or her account is levied and is taxed on it
even though the funds are paid to a third party. See Larotonda
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