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distribution did petitioner knowingly contribute, either directly
or indirectly, to the Plan. Petitioner deposited the check
representing the distribution into his personal bank account on
July 3, 1989. On July 14, 1989, petitioner mailed a check drawn
against his personal account to Goldfinger in the amount of
$3,474.71. Goldfinger was the payee of this check, and he
subsequently deposited it into his personal bank account. On his
return for 1989, petitioner reported the $6,749 as a nontaxable
IRA distribution. Respondent determined that the entire amount
of the distribution constituted taxable income to petitioner.
OPINION
As a general rule, respondent’s determinations are presumed
correct, and petitioner has the burden of proving otherwise.
Rule 142(a).
There is no dispute as to whether petitioner received the
$6,749 distribution. Petitioner contends, however, that the
$3,474.71 check constitutes his investment in the Plan.
Respondent, on the other hand, contends that petitioner sent the
check to Goldfinger pursuant to an agreement wholly unrelated to
the Plan, and that, under section 72(e)(6), petitioner has no
investment in the Plan. We agree with respondent.
Section 402 provides that amounts actually distributed from
a qualified plan are taxable to the distributee under section 72
in the year of distribution. Sec. 402(a)(1). The Plan in the
instant case is a qualified plan. Sec. 401(a). Section 72
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