- 5 -
SEC. 72(e)(6). Investment in the contract.--* * *
(A) the aggregate amount of premiums or other
consideration paid for the contract before such date,
minus
(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
sustained.
Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011