Herbert L. Mitchell, deceased, and Ella Marie Mitchell - Page 6

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                  Not having seen this letter, Mr. Browne believed that in                             
            order to avoid current tax on the transfer refund distribution,                            
            Mr. Mitchell should have rolled it over within 60 days of the                              
            distribution into an eligible retirement plan, such as an IRA.                             
            He learned from petitioner that this had not been done.                                    
                  Notwithstanding the failure to execute a timely rollover,                            
            Mr. Browne advised petitioner to effect a rollover by opening                              
            IRA’s with the proceeds from the distribution.  He did not advise                          
            her that a rollover would be ineffective because untimely;                                 
            rather, he told her to roll over the proceeds and referred her to                          
            a financial adviser for that purpose.  At the end of June 1992,                            
            with the assistance of the financial adviser recommended to her                            
            by Mr. Browne, petitioner sold the Treasury securities and opened                          
            four separate IRA’s--two with initial investments of $130,000,                             
            and two more in the initial amount of $97,500, or a total of                               
            $455,000.  She also placed $162,500 in a non-IRA account with an                           
            investment service, bringing her total amount invested, including                          
            the IRA’s, to $617,500.                                                                    
                  In June or July 1992, Mr. Browne prepared a joint 1991                               
            Federal income tax return on behalf of petitioner and her                                  
            deceased husband.  The return reflected the receipt of the                                 
            transfer refund distribution of $666,564.41.  The return as filed                          
            included Forms 1099-R issued by the State of Maryland reflecting                           
            that $629,083.14 of the transfer refund was fully taxable.                                 

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