Jerry Silver - Page 5

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               SEC. 72(e)(6).  Investment in the contract.--* * *                     
                    (A) the aggregate amount of premiums or other                     
               consideration paid for the contract before such date,                  
                    (B) the aggregate amount received under the                       
               contract before such date, to the extent that such                     
               amount was excludable from gross income under this                     
               subtitle or prior income tax laws.  [Emphasis added.]                  
          The "date" referred to in this provision is the date of the                 
          distribution.  Sec. 72(e)(8)(B).                                            
               Petitioner’s testimony at trial concerning why he issued a             
          check to Goldfinger in the amount of $3,474.71 was confusing; his           
          credibility was also questionable.  In any event, it is quite               
          clear that petitioner paid Goldfinger after the date upon which             
          the distribution occurred.  Petitioner seems to argue that his              
          ignorance of both the law and the Plan’s existence should somehow           
          operate to pardon his delinquency in contributing to the Plan.              
          We cannot agree.  The mechanics of the Internal Revenue Code do             
          not permit such circumvention, and we are without the power to              
          effect a similar result.                                                    
               Accordingly, as the statute is clear, and as there is no               
          evidence that petitioner contributed any amount to the Plan prior           
          to the distribution, we find that petitioner did not have an                
          investment in the contract as defined in section 72(e).                     
          Therefore, respondent’s determination as to this issue is                   

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