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Discussion
We must decide whether the 1988 and 1989 distributions from
the Plan and Trust to the temporary administrator were taxable to
the estate in the years of receipt. Respondent's determinations
are presumed correct, and the burden is on the estate to prove
the determinations wrong. Rule 142(a); Welch v. Helvering,
290 U.S. 111 (1933).
Generally, income is includable in a taxpayer's gross income
in the year of receipt under section 451(a).2 However, the
Congress has provided more specialized rules in the area of
employee plans, and where applicable, these rules govern instead
of the more general accounting rules identified under section
451(a). Section 402(a)(1) provides in part:
Except as provided in paragraph (4), the amount
actually distributed to any distributee by any
employees' trust described in section 401(a) which is
exempt from tax under section 501(a) shall be taxable
to him, in the year in which so distributed under
section 72 (relating to annuities) * * *
The parties appear to be in agreement that the Plan and Trust
meets the requirements of section 401(a) and that there is a
trust forming a part of the Plan that is exempt from tax under
2 Sec. 451(a) provides in part: "The amount of any item of
gross income shall be included in the gross income for the
taxable year in which received by the taxpayer, unless, under the
method of accounting used in computing taxable income, such
amount is to be properly accounted for as of a different period."
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