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returns to determine a deficiency and additions to tax, using a
married filing separately status for petitioner.
Petitioner filed a joint 1990 Federal income tax return with
his wife on April 15, 1993. On that return, petitioner included
all of the payments that respondent had determined were taxable
in the notice of deficiency, except for the following:
Reported
Payor on Form: Amount
National Home Life Assurance 1099-R $1,092
Jackson National Life Ins. Co. 1099-R 14,470
Jackson National Life Ins. Co. 1099-INT 53
The total distribution by National Home Life Assurance
(National) was $4,426, but respondent contends that only $1,092
was taxable, based on information reported to respondent by
National. The $14,470 payment that petitioner received from
Jackson National Life Insurance Company (Jackson) was his one-
third share of the accumulation value ($43,410) of an annuity
that had been purchased by petitioner's mother, who died in 1990
at age 62. Upon his mother's death petitioner became entitled to
this payment as a beneficiary under the annuity contract.
Jackson reported the $14,470 as the gross distribution to
petitioner and did not report what portion of the distribution
was taxable. Petitioner's mother acquired the Jackson annuity in
a section 1035 exchange for an annuity that she had acquired
through United of Omaha. This exchange took place on May 5,
1986. Respondent contends that the $53 payment from Jackson is
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Last modified: May 25, 2011