Gordon J. and Bonnie L. Schoof - Page 11

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          own names.6  We need not, and do not, address this latter issue             
          because we hold that the failure of Mr. Thomson to qualify as a             
          trustee requires all of petitioners' distributions to be included           
          in their income for 1991.                                                   
               The term "individual retirement account" is defined in section         
          408(a) as:                                                                  
               a trust created or organized in the United States for the              
               exclusive benefit of an individual or his beneficiaries,               
               but only if the written governing instrument creating the              
               trust meets the following requirements:                                
                    *       *       *       *       *       *       *                 
                         (2) The trustee is a bank (as defined in                     
                    subsection (n)) or such other person who                          
                    demonstrates to the satisfaction of the                           
                    Secretary that the manner in which such other                     
                    person will administer the trust will be                          
                    consistent with the requirements of this                          
                    section.                                                          
          See also Orzechowski v. Commissioner, 69 T.C. 750, 754-755 (1978),          
          affd. 592 F.2d 677 (2d Cir. 1979).                                          




               6    Respondent also asserts that petitioners Alice M.                 
          Johnson, Robert J. Barraclough, Bette Barraclough, and Nurit                
          Haramgaal failed to rollover their distributions into the FAC IRA           
          within 60 days.  Because we hold that the rollovers do not                  
          qualify for tax-free treatment, we need not address this issue.             
          Nonetheless, we are mindful that Mrs. Johnson and the                       
          Barracloughs did not establish the date of their IRA                        
          distributions, and that Ms. Haramgaal's May 2, 1991, contribution           
          was more than 60 days from her Jan. 31, 1991, pension plan                  
          distribution.                                                               







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