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Gross distribution $33,850
Taxable amount 9,760
Employee contributions or insurance premiums 24,089
Box 7 of Form 1099-R indicated that the distribution was a normal
distribution.
Petitioners timely filed a joint Federal income tax return
for 2000. On their return, petitioners did not report the gross
distribution from Transamerica and did not include the taxable
amount in income.
In the notice of deficiency, respondent determined that
petitioners received a taxable pension in the amount of $9,760,
which they failed to report on their Federal Income Tax return.
Petitioners timely filed a petition with the Court disputing
the determined deficiency.
Discussion
Generally, the Commissioner’s determinations are presumed
correct, and the taxpayer bears the burden of proving that those
determinations are erroneous. Rule 142(a); Welch v. Helvering,
290 U.S. 111, 115 (1933).5
Gross income includes income from whatever source derived
including, but not limited to, life insurance contracts.6 Sec.
5 We need not decide whether sec. 7491, concerning burden
of proof, applies to the present case because the facts are not
in dispute and the issue is one of law. See Higbee v.
Commissioner, 116 T.C. 438 (2001).
6 The policy satisfies the definition of a life insurance
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Last modified: May 25, 2011