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thus not included in their gross income.13 Petitioners provided
no evidence that such a rollover took place, or that the rollover
took place within 60 days of the distribution. Petitioners were
in a superior position with respect to access to information that
would prove the amount and date of the alleged rollover. By
failing to produce such information, petitioners have failed to
meet their burden of coming forward with evidence that $285,603
of the IRA distributions is not included in their gross income.
Therefore, we find that the distributions from the Fidelity
IRA and the US Bancorp IRA totaling $749,930 are included in
petitioners’ gross income.
D. Income From the Exercise of Intel Stock Options
Gross income includes compensation for services, “including
fees, commissions, fringe benefits, and similar items”. Sec.
61(a)(1). Section 83(a) provides in pertinent part that if
property is transferred to a taxpayer in connection with the
performance of services (e.g., stock transferred to a taxpayer
13 On their Federal income tax return, petitioners reported
that only $444,327 of the $749,930 in distributions from the
Fidelity IRA and the US Bancorp IRA was included in their gross
income. Petitioners’ position was based on their assertion that
$20,000 of the $160,000 in distributions from the Fidelity IRA
and $285,603 of the $500,000 distribution from the US Bancorp IRA
were rolled over into another IRA. On brief, petitioners claimed
that only $285,603 of the $500,000 distribution from the US
Bancorp IRA was rolled over into another IRA and conceded that
$469,091 was includable in their gross income. Thus, we find
that petitioners have abandoned their argument that $20,000 of
the $160,000 in distributions from the Fidelity IRA was rolled
over into another IRA.
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