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indicate the type of plan involved. Petitioner did not include
the $1,193 in gross income on his 1996 income tax return.
At trial, petitioner acknowledged receiving moneys from
Metropolitan Life Insurance Co. and testified that he had a life
insurance policy with that insurer. Petitioner contends the
distribution he received was a policy loan and, therefore, was
not gross income. Petitioner presented no documentary evidence
to establish that he had received such a loan. Petitioner agreed
that loan proceeds from an insurance policy generally do not
constitute gross income, yet, was unable to answer why his
insurance company considered $1,193 of the distribution as a
taxable amount. The Court concludes that petitioner has not
established that the proceeds he received from Metropolitan Life
Insurance Co. during 1996 were the proceeds of a loan or that
such distributions did not constitute gross income. Respondent,
therefore, is sustained on this issue.
In the notice of deficiency, respondent determined that
petitioner was liable for the accuracy-related penalty under
section 6662(a) for negligence or intentional disregard of rules
or regulations with respect to the following adjustments:
State income tax refund $1,503
Unemployment compensation 748
Form 1099-R, Metropolitan Life Ins. Co. 1,193
Tax withheld by Metropolitan Life Ins. Co. 119
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