- 2 -
Respondent determined a deficiency in petitioners’ Federal
income tax for the taxable year 1998 in the amount of $12,338 and
an accuracy-related penalty under section 6662(a) in the amount
of $2,468.
After dismissal of petitioner Sally Kirshenbaum (Mrs.
Kirshenbaum),2 the issues for decision are as follows:
(1) Whether petitioner Sanford M. Kirshenbaum (petitioner)
received a taxable distribution of $49,997.15 from his Individual
Retirement Account (IRA). We hold that he did.
(2) Whether petitioner received taxable Social Security
benefits of $12,475. We hold that he did.
(3) Whether petitioner is entitled to IRA contribution
deductions of $4,000. We hold that he is not.
(4) Whether petitioner is liable for an accuracy-related
penalty under section 6662(a) due to a substantial understatement
of income tax. We hold that he is.
An adjustment to the amount of petitioner’s itemized
deductions is a purely mechanical matter, the resolution of which
is dependent on our disposition of the disputed issues.
2 Petitioner Sally Kirshenbaum did not appear at trial and
did not execute the stipulation of facts. Accordingly, the Court
will dismiss this action as to her. Rule 123(b). However,
decision will be entered against petitioner Sally Kirshenbaum
consistent with the decision entered against petitioner Sanford
M. Kirshenbaum as to the deficiency in tax and the accuracy-
related penalty.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011