Ramzy M. and Lena Kopty - Page 10




                                        -10-                                          
         remaining 12 days of November and $1,322.35 for the month of                 
         December.  Thus, through the end of 1998, petitioner’s IRA earned            
         dividend income in the aggregate amount of $1,832.25 on the net              
         proceeds realized from the sale of his J.D. Edwards & Co. stock.             
              In early 1999, the ESOP’s trustee, Wells Fargo Bank, issued             
         to petitioner a Form 1099-R, Distributions From Pensions,                    
         Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance               
         Contracts, etc., for tax year 1998.  According to that form,                 
         during 1998, petitioner had received gross distributions from the            
         J.D. Edwards ESOP of $467,817.48 of which the taxable amount is              
         $42,695.14, and on which Federal income tax of $51.38 had been               
         withheld.  Similarly, Norwest Bank Minnesota, N.A., issued to                
         petitioner a Form 5498, IRA Contribution Information, on behalf              
         of Norwest Bank MN NA IRA C/F Ramzy Kopty reporting rollover                 
         contributions of $411,629.63 for 1998.  According to that form,              
         the fair market value of petitioner’s IRA account was                        
         $337,854.33.                                                                 
              During 1999, petitioner’s IRA earned dividend income in the             
         aggregate amount of $6,093.21.  During the year, petitioner                  
         caused Norwest to make distributions from his IRA in the                     
         aggregate amount of $331,500, as follows:                                    
                        Date                      Amount                              
                        Jan. 4, 1999             $70,000                              
                        Jan. 4, 1999             20,000                               
                        Feb. 1, 1999             15,000                               
                        Apr. 26, 1999            30,000                               






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