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CD in the amount of $247,000.8 Petitioner retained the remaining
$50,000 in his personal checking account in anticipation of
expenses to accompany Andrea to her auditions. The SFB
distribution was reported to petitioners on Forms 1099-R,
Distributions From Pensions, Annuities, Retirement or Profit-
Sharing Plans, IRAs, Insurance Contracts, etc. The taxable
portion of the distribution on the Form 1099-R was $48,856.87.
Petitioner also requested four distributions from the
Glenbrook nonqualified annuity during 1999 (Glenbrook
distributions). These distributions totaled $76,408.13.
Petitioner requested that Glenbrook withhold 10 percent of the
taxable portions of the distributions, or $1,269.25, for Federal
income tax purposes. Those distributions, like the Southern Farm
Bureau distribution, were reported to the Internal Revenue
Service and to petitioners on Forms 1099-R. The taxable amount
of the Glenbrook distributions was $12,692.51. Thus, the taxable
distributions from the Southern Farm Bureau and Glenbrook
nonqualified annuities totaled $61,549.38, and the total income
tax withholdings from both payers was $34,265.26.
8 Citizens State Bank, CD No. 17140, dated Feb. 3, 1999.
Petitioner purchased the CD in the name of “Anthony J.
Sadberry/Trust, Anthony J. Sadberry, Trustee,” but under his own
personal Social Security number. He later assigned these funds
to a properly formed trust with its own taxpayer identification
number, as will be further explained.
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