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collection action by respondent totally unrelated to the year at
issue. Such conduct is not acceptable. Respondent, therefore,
is sustained on this issue.
The second issue is whether a $500 distribution received by
petitioner from an IRA is includable in gross income. Section
402(a) provides that "any amount actually distributed to any
distributee by any employees' trust described in section 401(a)
* * * shall be taxable to the distributee, in the taxable year of
the distributee in which distributed, under section 72 (relating
to annuities)." However, an exception to this general rule is
found in section 402(c)(1), which provides:
(1) Exclusion from income.--If.--
(A) any portion of the balance to the credit
of an employee in a qualified trust is paid to the
employee in an eligible rollover distribution,
(B) the distributee transfers any portion of
the property received in such distribution to an
eligible retirement plan, and
(C) in the case of a distribution of property
other than money, the amount so transferred
consists of the property distributed,
then such distribution (to the extent so transferred)
shall not be includible in gross income for the taxable
year in which paid.
Further, section 402(c)(3) provides that such a rollover
exclusion shall not apply "to any transfer of a distribution made
after the 60th day following the day on which the distributee
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