- 23 -
5. IRA Distribution
In the stipulation of facts, petitioner stipulated that
during the taxable year 1999, Ella Joseph received a distribution
in the amount of $1,493 from Bank One. Petitioner testified that
he did not know the source of the $1,493 distribution.
Respondent contends that this distribution was reported to him
from Bank One on a Form 1099-R, which reported this distribution
as an IRA distribution to Ella Joseph and income to petitioners.
Petitioners did not include this distribution in gross income on
their jointly filed 1999 Federal income tax return.
Gross income includes all income from whatever source
derived. Sec. 61(a). Section 61(b) specifically includes items
included under section 72 (relating to annuities and IRAs).
As a general rule, amounts paid or distributed out of
individual retirement plans, including IRAs, are included in
gross income when received by the payee or distributee under
provisions of section 72. Sec. 408(d)(1). The regulations
provide in relevant part as follows:
Except as otherwise provided in this section, any amount
actually paid or distributed or deemed paid or distributed
from an individual retirement account or individual
retirement annuity shall be included in the gross income of
the payee or distributee for the taxable year in which the
payment or distribution is received.
Sec. 1.408-4(a)(1), Income Tax Regs.
As stated previously, petitioner does not dispute that Ella
Joseph received the money from Bank One in 1999. Petitioner does
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011