PURSUANT TO INTERNAL REVENUE CODE
SECTION 7463(b),THIS OPINION MAY NOT
BE TREATED AS PRECEDENT FOR ANY
1Unless otherwise indicated, subsequent section references
are to the Internal Revenue Code in effect for the year at issue.
T.C. Summary Opinion 2006-58
UNITED STATES TAX COURT
RICHARD C. AND MARY JO RUNYAN, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 4124-04S. Filed April 19, 2006.
Richard S. Avellone, for petitioners.
Steven W. LaBounty, for respondent.
COUVILLION, Special Trial Judge: This case was heard
pursuant to section 7463 in effect at the time the petition was
filed.1 The decision to be entered is not reviewable by any
other court, and this opinion should not be cited as authority.
Respondent determined a deficiency of $3,057 in petitioners’
2001 Federal income tax.
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The sole issue for decision is whether petitioners are
entitled to a deduction of $5,221 for the year 2001 for a
contribution to a retirement plan under section 408(k), commonly
referred to as a SIMPLE IRA.
Some of the facts were stipulated. Those facts and the
accompanying exhibits are so found and are incorporated herein by
reference. Petitioners’ legal residence at the time the petition
was filed was Labadie, Missouri. Petitioners were not present at
trial but were represented by counsel.
Petitioners filed a timely joint Federal income tax return
for 2001, on which they reported the following income:
Wages and salaries $299,273
Taxable interest 12,537
Ordinary dividends 1,370
Taxable refunds and credits 235
Schedule C, Trade or Business Income 10,384
Schedule D, Capital Losses (3,000)
Total income $320,799
On line 29, Self-employed SEP, SIMPLE, and qualified plans,
of Form 1040, U.S. Individual Inc