G. Richard and Sara B. Childs - Page 11

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               Wood v. Commissioner, supra, involved a distribution of cash           
          and stock from a profit-sharing plan to a taxpayer, who then                
          established an IRA.  In that case, the taxpayer was aware that              
          his distribution was required to be rolled over into an IRA                 
          within 60 days of receipt.  Acting with such knowledge, the                 
          taxpayer did everything that he could reasonably be expected to             
          do in order to roll over his lump-sum distribution as required by           
          law.  Thus, for example, the taxpayer met with an IRA trustee,              
          instructed the IRA trustee to open an IRA, executed the documents           
          necessary to open such IRA, and transferred the entire                      
          distribution to the IRA trustee for deposit in his IRA.  The IRA            
          trustee assured the taxpayer that the taxpayer's request would be           
          carried out.                                                                
               However, because of a bookkeeping error by the IRA trustee,            
          certain of the trustee's records indicated that part of the                 
          distribution had not been transferred to the IRA account within             
          the requisite 60-day period.  We held that the financial                    
          institution's bookkeeping error did not preclude rollover                   
          treatment because, in substance, the taxpayer had satisfied the             
          statutory requirements.  We think that the circumstances in the             
          present case are comparable to those in Wood v. Commissioner,               
          supra.                                                                      
               Petitioners, like the taxpayer in Wood, acted with knowledge           
          of the law.  The record demonstrates that petitioners were                  
          extremely attentive to the tax consequences of petitioner's                 




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