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files. Petitioner’s purported designation, however, was not
buttressed by any written documentation. Thus, the lack of a
written governing instrument creating petitioner’s purported
Veazie property-IRA is fatal to his contention that he
established an IRA consistent with section 408(a)(2).16 The
statute and regulations are clear that a written governing
instrument is required to establish an IRA and, therefore,
without a written instrument, petitioner’s purported Veazie
property-IRA must fail to qualify as an IRA pursuant to section
408(a).
In view of the foregoing, we hold that petitioner received a
taxable IRA distribution of $49,997.15. Therefore, we sustain
respondent’s determination on this issue.
B. Social Security Benefits
Section 86 provides for the taxability of Social Security
benefits pursuant to a statutory formula. For tax purposes,
Social Security disability benefits are treated in the same
manner as other Social Security benefits. Sec. 86(d)(1); Thomas
v. Commissioner, T.C. Memo. 2001-120. Thus, if a taxpayer’s
modified adjusted gross income (MAGI) plus one-half of the
16 We do not regard petitioner’s statements regarding the
Veazie property-IRA as credible evidence within the meaning of
sec. 7491(a)(1). See Tokarski v. Commissioner, 87 T.C. 74, 77
(1986); see also Sykes v. Commissioner, T.C. Memo 2001-169.
Accordingly, we decide the issue before us without regard to the
general burden-shifting rule of sec. 7491(a)(1).
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