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the IRA trusts of which T was to be the trustee.
Concurrently therewith each of the IRA trusts acquired a
unit(s) (or fraction thereof) in an investment in a bus
stop shelter program.
1. Held: T is not qualified to serve as a trustee
of an IRA trust under sec. 408(a)(2), I.R.C., and sec.
1.408-2(b)(2), Income Tax Regs.
2. Held, further, the distributions to Ps were
taxable in the year of distribution and were subject to
the 10-percent additional tax pursuant to sec. 72(t),
I.R.C.
3. Held, further, under Wood v. Commissioner, 93
T.C. 114 (1989), Ps did not substantially comply with the
rollover contribution requirements of sec. 408(d),
I.R.C., so as to exclude the distributions from income.
Stephen M. Goodman, for petitioners.
Lisa W. Kuo, for respondent.
JACOBS, Judge: Respondent determined deficiencies in
petitioners' 1991 Federal income tax as follows:
Docket
No. Petitioner(s) Deficiency
4265-96 Gordon J. and Bonnie L. Schoof $24,605
6210-96 Lyman K. and Judith Kennedy 4,112
6394-96 Melvin L. and Gail H. Rush 8,706
6617-96 Alice M. Johnson1 7,397
6761-96 Robert J. and Bette Barraclough 10,764
7632-96 William N. and Joan E. Hughes 128,225
9362-96 William W. and Joan E. Agnew 46,533
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