Anthony J. and Denise D. Sadberry - Page 7

                                        - 7 -                                         

          originally anticipated and budgeted.  In part to finance Andrea’s           
          education, he requested and received sizeable distributions from            
          the Glenbrook nonqualified annuity and the SFB nonqualified                 
          annuity during 1999.  He knew that portions of these                        
          distributions would be taxable and attempted to anticipate his              
          tax obligations and Andrea’s future expenses through                        
          withholdings, advance planning, and record keeping.  Petitioner             
          made the decisions regarding the distributions himself and did              
          not seek or receive tax advice regarding them.                              
               On January 21, 1999, petitioner requested a distribution of            
          $330,000 from the SFB nonqualified annuity (SFB distribution).              
          He requested that Southern Farm Bureau withhold 10 percent of the           
          gross distribution, or $33,000, for Federal income taxes.                   
          Petitioner explained why he requested that the withholding be               
          calculated from the gross amount of the distribution, rather than           
          from the taxable portion, as he testified:                                  

               to be safe.  I knew enough to know that only a certain                 
               amount of it was going to be taxable * * *.   And I said,              
               Well, $33,000 ought to cover it * * *.  I was getting a                
               certain amount of money in the IRS’ hands, in case I’m wrong           
               about this whole thing.                                                

          On January 30, 1999, Southern Farm Bureau issued a check to                 
          petitioner in the net amount of $297,000, after withholding                 
          $33,000 income taxes.  With these funds, petitioner purchased a             







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011