- 2 - be entered is not reviewable by any other court, and this opinion should not be cited as authority. Respondent determined a deficiency in petitioners’ Federal income tax for the taxable year 2001 of $7,052 and an accuracy- related penalty under section 6662(a) of $1,410. After concessions, the issues for decision are:2 (1) Whether a distribution received by petitioner Julie J. Filer as the successor owner of her deceased mother-in-law’s annuity contract is includable in petitioners’ gross income. We hold that it is to the extent provided herein. (2) Whether petitioners are liable under section 6662(a) for an accuracy- related penalty for substantial understatement of income tax. We hold that they are not. Background Some of the facts have been stipulated, and they are so found. We incorporate by reference the parties’ stipulation of facts, supplemental stipulation of facts, and accompanying exhibits. At the time that the petition was filed, petitioners resided in Orangevale, California. (References to petitioners individually are to Mark or Julie.) 2 Petitioners concede: (1) They received unreported interest income of $28, and (2) they are not entitled to an IRA deduction. Respondent concedes that petitioners are not liable under sec. 72(t) for the additional tax on an early distribution from a qualified retirement plan.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
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