- 3 -
respectively. Total Lighting Sales, Inc., did not reduce
petitioner’s salary to fund the deposits or make contributions on
his behalf. Instead, petitioner made the deposits using funds
drawn from his personal savings account.
On their joint 2003 and 2004 Federal income tax returns,
petitioners claimed deductions for the amounts deposited into the
SIMPLE IRA.1 Respondent issued petitioners a notice of
deficiency in December 2005, disallowing the claimed deduction
for each year.
Discussion
In general, the Commissioner’s determination set forth in a
notice of deficiency is presumed correct. Rule 142(a)(1); Welch
v. Helvering, 290 U.S. 111, 115 (1933). In certain
circumstances, the burden of proof may shift to the Commissioner.
Sec. 7491(a)(1); Rule 142(a)(2). Because the facts are not in
dispute, we decide this case without regard to the burden of
proof.
A SIMPLE IRA is a retirement plan for small employers. Sec.
408(p)(2)(C)(i); Notice 98-4, 1998-1 C.B. 269. In general,
contributions made to a SIMPLE IRA plan are not included in an
employee’s gross income. Sec. 402(h)(1), (k); Notice 98-4, Q&A
I-1, 1998-1 C.B. at 275. Contributions can only be made under a
1 Although petitioner deposited $10,500 to the SIMPLE IRA in
2004, petitioners claimed only a $9,315 deduction for that year.
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: November 10, 2007