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other property acquired during petitioners’ marriage, with the
exception of a big-screen television and VCR, a vacuum cleaner, a
couch and matching chair, and a computer and desk that petitioner
received as part of petitioners’ divorce settlement.
Before petitioners separated, petitioner prepared
petitioners’ 1995 joint Federal income tax return. He did not
report the distributions attributable to Ms. Braden’s father as
income on that return because he believed the funds to be
nontaxable. Petitioner did not know the distributions consisted
of IRA withdrawals and interest income, nor did he know the
proper characterization of the distributions for Federal income
tax purposes until he was contacted by respondent’s agent.
In the notice of deficiency, respondent determined that Ms.
Braden received distributions from the IRA’s of her deceased
father, the taxable portion of which totaled $61,681. After
allowing a $5,000 death benefit exclusion, respondent determined
that petitioners failed to report $56,681 of the IRA
distributions as income on their 1995 joint return. Respondent
also determined that petitioners failed to report interest income
of $754 on their 1995 joint return.
OPINION
A. Statutory Framework
Section 6013(a) authorizes spouses to elect to file a
joint Federal income tax return. If they elect to do so, the tax
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Last modified: May 25, 2011