Dennis W. Farley, Jr. and Janice J. Farley - Page 4

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          Petitioners’ legal residence at the time the petition was filed             
          was Albuquerque, New Mexico.                                                
               Dennis W. Farley, Jr. (petitioner) was born December 25,               
          1942.  In January 1994, he retired from United Missouri Bank in             
          Kansas City, where he had been employed for more than 31 years.3            
          At the time of his retirement, petitioner was 52 years of age.              
          Upon retirement, petitioner received lump-sum distributions from            
          qualified pension and profit-sharing accounts totaling $274,610.            
          These funds were timely rolled over into self-directed individual           
          retirement accounts (IRA accounts) pursuant to section 402(c).              
          During 1995, petitioner commenced receiving periodic                        
          distributions from his IRA accounts.                                        
               Petitioner calculated the amount of his periodic                       
          distributions by first calculating an amortized growth rate of              
          his IRA accounts based on a life expectancy of 30.4 years.  After           
          determining the projected growth of the accounts over this                  
          period, petitioner concluded he could withdraw (or receive                  
          distributions) from his accounts of $80,040 annually.  He rounded           


               3    Paragraph 4 of the stipulation states that petitioner             
          retired from United Missouri Bank in 1995.  However, petitioner             
          testified that the actual date was Jan. 1994.  The Court is not             
          bound by a stipulation of fact that appears contrary to the facts           
          disclosed by the record.  Rule 91(e); Blohm v. Commissioner, 994            
          F.2d 1542, 1553 (11th Cir. 1993), affg. T.C. Memo. 1991-636;                
          Estate of Eddy v. Commissioner, 115 T.C. 135 (2000).  The                   
          difference in the dates is not material to the issue in this                
          case.                                                                       





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