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See Crain v. Commissioner, 737 F.2d 1417 (5th Cir. 1984). In
short, petitioners are taxpayers subject to the income tax laws
and to the jurisdiction of this Court. See Abrams v.
Commissioner, 82 T.C. 403, 406-407 (1984).
On this record, the Court holds that petitioners failed to
include in income $45,955 in retirement plan distributions from
Berkeley for 1997. Respondent is, therefore, sustained on this
issue.
With respect to the $11,281 IRA distribution from Bank of
America to petitioner during 1997, petitioners reported the
distribution on their 1997 return but reported the taxable amount
as zero. Petitioners appear to argue that the distribution
should not be included in income for the year at issue because
the liquidation of the IRA constituted an involuntary conversion
forced upon them by petitioner's dismissal from employment with
Berkeley in that, due to the fact that petitioner was no longer
employed after January 1997, petitioners were forced to use
accumulated savings to pay their living expenses, including the
subject IRA.
In general, any amount paid or distributed out of an
individual retirement account is includable in gross income of
the payee or distributee in accordance with section 72. Sec.
408(d)(1); sec. 1.408-4(a)(1), Income Tax Regs; Arnold v.
Commissioner, 111 T.C. 250, 253 (1998). Section 408(d)(3)
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