- 4 - Income Tax Regs. In the case of a single taxpayer, the deduction is totally disallowed for 1997 if the taxpayer’s modified adjusted gross income2 (modified AGI) exceeds $35,000 for the taxable year.3 Petitioner reported modified AGI of $120,384.17 in 1997; thus he is not entitled to a deduction if he was an active participant in a qualified retirement plan. Petitioner does not appear to raise the issue of whether the CDI pension plan is of the type listed in section 219(g)(5). Therefore, we find that petitioner has conceded that CDI’s retirement plan is among those listed. Generally, a deficiency notice is presumed correct, and the taxpayer has the burden of proving it wrong. See Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).4 Petitioner testified that he was not eligible to participate in CDI’s plan. The only other evidence in the record is CDI’s Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit- Sharing Plans, IRAs, Insurance Contracts, etc., indicating petitioner’s participation in its retirement plan. Respondent 2Modified adjusted gross income, as relevant herein, is adjusted gross income determined without regard to any deduction for an IRA. See sec. 219(g)(3)(A). 3A single taxpayer’s deduction for an IRA contribution in 1997 is limited using a ratio determined by dividing the excess of the taxpayer’s modified adjusted gross income over $25,000, by $10,000. See sec. 219(g)(2) and (3). 4We do not find that the burden-shifting provisions of current sec. 6201(d) or sec. 7491 apply.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011