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acted reasonably and in good faith towards the subject matter of
the deficiency. Petitioner notes that respondent has
acknowledged through correspondence that petitioner aimed to meet
the 60-day rule but was thwarted from doing so. In addition,
petitioner testified that he stapled to his 2000 tax return a
letter with three exhibits (collectively, letter) explaining that
he had received the Form 1099-R and the $118,000 referenced
therein but that he was of the view that this amount was not
taxable because he had substantially complied with the 60-day
rule. Petitioner testified that respondent’s service center
returned the letter to him on October 1, 2001, with
correspondence.
We disagree with petitioner’s argument that he acted
reasonably and in good faith with respect to the subject matter
of the deficiency. Petitioner is a seasoned attorney who filed
his 2000 tax return with the knowledge and understanding of the
relevant provisions of section 408. The fact that he may have
intended earnestly to meet the 60-day rule did not excuse him
from not reporting the withdrawals as income when he failed to
meet that rule. Nor do we believe that reasonableness and good
faith may be found in petitioner’s litigating position that he
substantially complied with the 60-day rule by paying the amount
of withdrawals into the second IRA contemporaneously with the
closing of his escrow.
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