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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.
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