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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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