-18-
notice of deficiency which is at issue in this case, Mr. Kopty
contacted Wells Fargo and asked the bank to issue a new Form
5498, IRA Contribution Information, for taxable year 1998 and new
Forms 1099-R for taxable years 1999 and 2000. Pursuant to his
request, Wells Fargo issued a new Form 5498 for 1998 stating that
his IRA contribution for the year was zero, and it issued new
Forms 1099-R reporting gross distributions from his account at
Norwest of zero for 1999 and 2000.
OPINION
Taxability of the Distributions From Petitioner’s IRA During 1999
and 2000
The principal issue in this case is whether petitioners are
subject to tax, as provided by section 408(d)(1), on the
aggregate distributions of $331,500 and $10,000 that they
received from petitioner’s IRA during 1999 and 2000,
respectively. Petitioners argue that they are not subject to tax
on those distributions because the account from which the
distributions were made was not an IRA.
Mr. Kopty had established that account with Norwest in 1998,
and he funded it by making a purported rollover contribution of
the stock he had received as a distribution from the J.D. Edwards
ESOP. According to petitioners, they learned in 2004, during the
audit of their returns for 1999 and 2000, that Mr. Kopty had
failed to complete the rollover contribution within 60 days
following the day on which he had received the stock from the
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
Last modified: March 27, 2008