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provisions of section 72. Sec. 408(d)(1). The regulations
provide in relevant part as follows:
Except as otherwise provided in this section, any amount
actually paid or distributed or deemed paid or distributed
from an individual retirement account or individual
retirement annuity shall be included in the gross income of
the payee or distributee for the taxable year in which the
payment or distribution is received.
Sec. 1.408-4(a)(1), Income Tax Regs. There are no exceptions
applicable to the case at hand.
Under certain circumstances, a cash basis taxpayer who does
not actually receive possession of income may nevertheless be
considered to have constructively received that income. Sec.
451(a); sec. 1.451-2, Income Tax Regs. The relevant regulations
provide that:
Income although not actually reduced to a taxpayer’s
possession is constructively received by him in the taxable
year during which it is credited to his account, set apart
for him, or otherwise made available so that he may draw
upon it at any time, or so that he could have drawn upon it
during the taxable year if notice of intention to withdraw
had been given. * * *
Sec. 1.451-2(a), Income Tax Regs. For income to be
constructively received, the taxpayer must have control over its
disposition, and the income must not be subject to substantial
limitations or restrictions. Id.; Single v. Commissioner, T.C.
Memo. 1988-549.
We first address the $32,500 which petitioner authorized
First National to transfer to the Cincinnati bank in 1993.
Respondent argues that this amount is includable in petitioner’s
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