Eugene W. Alpern - Page 9




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          the close of the calendar year in which the taxable year begins.            
          See sec. 408(d)(2).                                                         
               Generally, a taxpayer is allowed a basis in IRA                        
          contributions to the extent the contributions are considered an             
          “investment in the contract”.  Secs. 408(d)(2), 72.  Section                
          72(e)(6) defines generally “investment in the contract” as being            
          the consideration paid for the contract less amounts previously             
          received under the contract that are excludable from gross                  
          income.  Thus, nondeductible contributions a taxpayer has made to           
          a retirement plan may be excluded from gross income when such               
          distributions are made.  See Campbell v. Commissioner, 108 T.C.             
          54 (1997).  In addition, Form 8606 must be attached to the return           
          for reporting the receipt of IRA distributions if the taxpayer              
          made any nondeductible IRA contributions before or during the               
          taxable year.                                                               
               The derivation and computation of the amounts reported on              
          the Forms 1099-R by Fidelity are not in dispute.  The only                  
          question is whether these amounts are includable in petitioner's            
          gross income.                                                               
               At trial, petitioner testified that he did not remember how            
          he calculated the excluded portion of his IRA or whether any                
          portion of the IRA distributions was from nondeductible IRA                 
          contributions.  In addition, petitioner failed to produce any tax           







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