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an annuity, including a retirement plan, where an exception does
not apply. Sec. 72(a). Additionally, unless an exception
applies, there is a 10-percent additional tax on early
withdrawals from qualified retirement plans. Sec. 72(t)(1). The
Michoff, Srs., have offered no testimonial or documentary
evidence to contradict their stipulations or to support an
exclusion. Respondent's determination is therefore sustained on
this issue.
Unreported Income--Michoff, Srs.
Revenue Agent Anita Russell, using a bank deposits analysis,
determined that the Michoff, Srs., received unreported taxable
income in the 1986, 1987, 1988, and 1989 tax years. Based on
this analysis, respondent, after concessions, argues that the
Michoff, Srs., had unreported income for those years in issue in
the amounts of $75,740, $10,107, $10673, and $4,600,
respectively.
The Michoff, Srs., purchased a cashier's check from El
Dorado Savings and Loan Association for the purpose of purchasing
real property in the amount of $64,500 in the 1986 tax year.
The Michoff, Srs., made deposits in the amounts of $11,240
and $10,107 which are in issue to their El Dorado Savings and
Loan Association account in the 1986 and 1987 tax years,
respectively. These deposits do not make up the total amount
deposited into this account in these years.
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