- 3 -
and the taxable portion of the $14,000 distribution was
$13,893.88. Thus, the taxable portion of both distributions
totaled $26,283.52. Federal income taxes of $2,477.52 were
withheld from the $12,500 distribution, and no Federal taxes were
withheld from the $14,000 distribution. Petitioner stipulated
that he did not roll over his Sunoco distributions into an
eligible retirement plan. Sec. 402(c); sec. 1.402(c)-2, Income
Tax Regs. Petitioner used a portion of the distributions to
purchase stock in Sunoco, Inc.; however, there is no contention,
nor was it established, that the stock purchase constituted a
qualified rollover.
On his Federal income tax return for 2000, petitioner
reported as income IRA distributions of $17,863, with the taxable
amount of these distributions being $17,863. It is evident from
the record that this income represented the distributions
petitioner received from the two qualified Sunoco plans; however,
petitioner presented no evidence at trial explaining how he
arrived at the $17,863 amount.3 Additionally, on his return,
petitioner claimed a tax withholding credit of $3,547.
3 There is evidence in the record that petitioner used
some of the IRA proceeds to purchase stock in Sunoco, Inc. The
Court surmises that the $17,863 reported as income on
petitioner's return represented that portion of the distributions
that was not used to purchase the Sunoco, Inc. stock. In the
stipulation, petitioner agreed that he did not roll over any of
the funds from either of the distributions into another IRA.
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