- 15 -
section 219(f). Therefore, the additional $160 monthly
compensation was derived "directly or through a qualified Indian
entity * * * from a fishing rights-related activity". Sec.
7873(a)(1). All of petitioner's compensation for the year 1992
was derived from Indian fishing-rights-related activity. And
since none of petitioner's compensation for the year was
includable in gross income, all of petitioner's IRA contributions
for the year are nondeductible. Secs. 219(b), 408(o).
Contributions are deemed to have been made to an IRA on the
last day of the preceding taxable year if the contribution is
made for that taxable year and is made by the due date of the
return for the taxable year. Sec. 219(f)(3). The parties agree
that petitioner had $1,920 of IRA contributions paid for tax year
1992.
Since under section 408(d)(4) the distribution to petitioner
of nondeductible contributions paid during the taxable year7 is
not subject to section 72, we find that $1,920 of the total
distribution from the Guardian account of $2,424.36 in 1992 was a
7Sec. 408(o)(4)(A)(ii) requires an individual who receives
any amount from an IRA for any taxable year to include certain
information on his tax return for the year. A taxpayer who
without reasonable cause fails to provide the prescribed
information form for designated nondeductible contributions may
be subject to a fine of $50. Sec. 6693(b)(2). This issue was
not raised by respondent.
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