-5-
(1989), Am. Air Filter Co. v. Commissioner, 81 T.C. 709 (1983),
and Tipps v. Commissioner, 74 T.C. 458, 468 (1980).4 Petitioner
notes that section 408 was recently amended to provide that “The
Secretary may waive the [relevant] 60-day requirement * * * where
the failure to waive such requirement would be against equity or
good conscience, including casualty, disaster, or other events
beyond the reasonable control of the individual subject to such
requirement.” Sec. 408(d)(3)(I) as added by the Economic Growth
and Tax Relief Reconciliation Act of 2001, Pub. L. 107-16, sec.
644, 115 Stat. 123.
We disagree with petitioner’s argument that the $118,000 is
excludable from his 2000 gross income. Under section 408(d)(1),
distributions from an IRA are generally includable in the
distributee’s gross income in the year of distribution. Although
an exception to this general rule lies in certain cases where a
distribution is paid into another IRA, see sec. 408(d)(3)(A)(i),
this case is not one of those cases. The exception requires that
the distributed funds be paid into another IRA within 60 days
after the distributee receives them. Id. Petitioner did not
within this 60-day period pay into the second IRA any of the
$118,000 withdrawn from the first IRA.
4 Petitioner also cites Irwin v. VA, 498 U.S. 89 (1990), and
notes that Irwin concerned equitable tolling. In that petitioner
has made no claim of equitable tolling in this case, we do not
decide that issue.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011