- 14 -
gross income includes income from annuities, and that principle
is reiterated in section 72(a):
Except as otherwise provided in this chapter, gross income
includes any amount received as an annuity (whether for a
period certain or during one or more lives) under an
annuity, endowment, or life insurance contract.
Petitioners do not deny having received the distributions in
question and do not dispute the Glenbrook and Southern Farm
Bureau allocations between the taxable and nontaxable portions of
the distributions as reported on Forms 1099-R. Petitioner
reported the same allocations on his financial disclosure forms
filed with the Texas Ethics Commission.
Nevertheless, petitioners disagree with respondent’s
determination that $61,548 should be taxed. First, they contend
that the distributions of SFB and Glenbrook were rolled over.
They argue that a partial rollover occurred when petitioners’
second refund from the IRS of $27,753.13, plus interest, was
received and transferred over to the SFB nonqualified annuity.13
They argue that the date of their actual receipt of the second
refund from the IRS, rather than the date of the SFB
13 Petitioners initially argued that a partial rollover
occurred when a portion of the net SFB distribution was invested
in a CD held in trust for Andrea Sadberry. The record reflects
that petitioners changed their position, and the Court considers
this point conceded.
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011