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entered $4,563 as the "amount owed", even though this last figure
should be the difference between the first two. We conclude that
these entries were made in bad faith, exemplifying petitioner's
misguided efforts to disclaim liability for tax.
We accordingly sustain respondent's determination that
petitioner is consequently liable for an addition to tax pursuant
to section 6651(a) for failure to file.
III. Gross Income
Respondent determined that petitioner had gross income of
$46,306 in 2000, consisting of pension distributions from NEBF
and EWTF, gambling winnings, and Social Security benefits.
A. Pension Distributions
With respect to the pension distributions, petitioner
stipulated that he received $11,082 from NEBF and $22,723 from
EWTF in 2000 and respondent determined that these amounts were
includible in petitioner's gross income. Pension disbursements
are generally includible in gross income under section 61(a)(11).
However, disbursements of employee contributions to a pension
plan constitute a nontaxable return of capital. See Ashman v.
Commissioner, T.C. Memo. 1998-145; Knight v. Commissioner, T.C.
Memo. 1989-219. At trial, petitioner appeared to argue that the
pension disbursements received were derived from employee
contributions since the amounts contributed by his employers were
determined by the number of hours he worked. Petitioner's
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