Michael J. Barkley - Page 12

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          after the date on which the employee has attained age 59�, and              
          the taxpayer elects for the taxable year to have all such amounts           
          received during such taxable year so treated.  Petitioner, the              
          employee in question, had not attained age 59� when he received             
          the 1998 distribution, and neither he nor Mrs. Barkley made the             
          election required by section 402(d)(4)(B)(ii).                              
               Despite these hurdles, petitioner nevertheless maintains               
          that he is entitled to deduct one-half of the 1998 distribution             
          under section 402(d)(3).  Section 402(d)(3) allows a taxpayer to            
          deduct from gross income “The total taxable amount of a lump sum            
          distribution for any taxable year * * *, but only to the extent             
          included in the taxpayer’s gross income for such taxable year.”             
          Petitioner argues that the deduction must be allowed because                
          section 402(d)(4)(E) provides that section 402(d), other than               
          section 402(d)(3), shall be applied without regard to community             
          property laws.                                                              
               Petitioner cites no authority to support his interpretation            
          of section 402(d), and his argument is without merit for several            
          reasons.  Section 402(d)(3) unambiguously provides that a                   

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