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income in 1995, the year in which First National issued the Form
1099. Petitioner argues that the amount is includable in income
in 1993, a taxable year that is not before this Court.
It is clear that petitioner ultimately received the $32,500
which was intended to be used for the purchase of the debenture.
Respondent has provided no evidence of when petitioner received
this money, relying solely on the Form 1099 issued by First
National. Petitioner, on the other hand, testified that the
debenture for his IRA was never purchased, and that he personally
retained the $32,500 which was taken from his IRA account in
1993. This testimony is supported by corroborating evidence
showing that First National never acquired the debenture. Nor
did First National receive the anticipated interest payments,
which indicates that the debenture had never been issued in its
name. We accordingly find that the $32,500 was, in fact,
distributed from the IRA and received by petitioner in 1993.
Because the $32,500 is included in petitioner’s income when it
was received in 1993, it is not included in income in 1995 as
determined by respondent. Sec. 408(d)(1).
We next address the $1,582.58 check mailed by First National
when it closed petitioner’s account in 1995. We have found that
petitioner never received either of the checks that First
National mailed to him in 1995. This finding is based upon the
fact that the return receipts--including the receipt for the
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