- 5 - [possessed].” United States v. Natl. Bank of Commerce, 472 U.S. 713, 725 (1985). Petitioners do not claim that petitioner-husband, against whom the assessment had been made, had no interest in the account levied upon, and it is not disputed that petitioner-husband could have withdrawn the funds. If petitioner-wife had cognizable interest in the property levied upon, her remedy was to bring an action in the district court against the United States pursuant to section 7426(a). See id. at 728. But, she cannot claim here that the distribution arising from the compliance with the levy by Dean Witter should be deemed void. 2. Adjustments to Petitioners’ Modified Adjusted Gross Income for EIC Purposes Section 32(a)(1) provides a credit based upon a taxpayer’s earned income, commonly referred to as an EIC. Section 32(a)(2)(B) provides that the credit shall not exceed “the phaseout percentage of so much of the modified adjusted gross income (or, if greater, the earned income) of the taxpayer * * * as exceeds the phaseout amount.” It is not contested that, if the income from the IRA distribution is included in petitioners’ MAGI, respondent’s adjustment to the credit is correct. Section 62(a) provides that adjusted gross income means gross income less certain deductions. These deductions do not include deductions for IRA distributions. Section 32(c)(5)Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011