-21-
2000 tax returns inconsistent with the position taken on their
1998 Return.”
We agree with respondent that, under the facts of this case,
Mr. Kopty made a valid rollover of the stock distribution he
received from the J.D. Edwards ESOP in 1998. Accordingly, we
reject the factual premise of petitioners’ argument that Mr.
Kopty’s account at Norwest was not an IRA, and we find that the
distributions from that account during 1999 and 2000 are subject
to tax under sections 408(d)(1) and 72(a). We do not reach
respondent’s second point that petitioners are estopped under the
duty of consistency from taking a different position on their
1999 and 2000 returns.
In order to fully address petitioners’ argument, we must set
out petitioners’ argument in more detail. Petitioners
acknowledge that they physically transferred the J.D. Edwards &
Co. stock certificate to Norwest within 60 days of the date on
which they received it, but they contend that they did not
irrevocably elect to make a rollover contribution to the IRA at
that time. According to petitioners, the stock certificate “was
hand-delivered to Norwest Bank [only] for safekeeping until the
shares become our [sic] unrestricted and eventually sold.” They
assert that “the bank placed the restricted shares by mistake in
the new account while the bank proceeded with the paperwork to
un-restrict and sell the shares.”
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