- 3 - made by petitioner as trustee of the plan. In June 1987, on petitioner’s behalf and at his direction, the plan invested $25,972.82 in corporate securities. During 1990, the plan was terminated and the proceeds of the Kidder account were transferred (rolled) into an individual retirement account at Daking Securities Corporation (the IRA). The IRA was established for the benefit of petitioner, who as its custodian, directed how IRA funds were to be invested. Petitioners did not include any of the proceeds rolled over from the Kidder account to the IRA in their 1990 income. During 1996, petitioner, who was 49 years old as of the close of that year, received distributions totaling $21,700 from the IRA (the IRA distributions). Petitioners did not include any of the IRA distributions in the income they reported on their 1996 Federal income tax return, which includes a Schedule D, Capital Gains and Losses. Nothing on the return suggests that any of the transactions listed on the Schedule D relate to investments of the plan or the IRA. In the notice of deficiency, respondent determined that the IRA distributions received by petitioner in 1996 are includable in petitioners’ income for that year. Other determinations made in the notice of deficiency are not in dispute.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011