Diep N. Hoang - Page 7

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          contributions to the extent the contributions are considered an             
          “investment in the contract”.  Secs. 72(e), 408(d); Alpern v.               
          Commissioner, T.C. Memo. 2000-246.  Nondeductible contributions             
          to an IRA minus any prior withdrawals or distributions of                   
          nondeductible contributions constitutes a taxpayer’s investment             
          in the contract.  Sec. 72(e); Campbell v. Commissioner, 108 T.C.            
          54, 61-62 (1997).  Nondeductible contributions, however, must be            
          designated as such and reported on Form 8606, Nondeductible IRA             
          Contributions, IRA Basis, and Nontaxable IRA Distributions, in              
          the manner prescribed by the Internal Revenue Code.  Sec.                   
          408(o)(4); Alpern v. Commissioner, supra.                                   
               Petitioner admitted that he lacked a complete paper trail              
          for his IRAs.  Petitioner relies on his own testimony to                    
          establish that a portion of the IRA distributions in 2001 was not           
               Petitioner claimed that in 1994 Mellon Bank inappropriately            
          “converted” an account he held there from a regular account to an           
          IRA account, and it was these funds that he eventually                      
          transferred to the Strong IRA.  We found petitioner’s testimony             
          to be general, vague, conclusory, and/or questionable in certain            
          material respects.  Petitioner’s testimony was contradictory as             
          to when he opened this alleged non-IRA account at Mellon Bank               
          (1980, the late 1980s, or 1993) and as to what kind of alleged              
          non-IRA account it was (a savings account, a CD, or a “timed                

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