                     T.C. Summary Opinion 2005-13



                        UNITED STATES TAX COURT



             IVAN AND KARENZA A. MIROSEVIC, Petitioners v.
              COMMISSIONER OF INTERNAL REVENUE, Respondent



     Docket No. 11125-03S.             Filed February 15, 2005.



     Ivan Mirosevic and Karenza A. Mirosevic, pro sese.

     William J. Gregg, for respondent.




     LARO, Judge:     This case was heard pursuant to the provisions

of section 7463 of the Internal Revenue Code in effect when the

petition was filed.    The decision to be entered is not reviewable

by any other court, and this opinion should not be cited as

authority.    Subsequent section references are to the Internal

Revenue Code as applicable to 2000, Rule references are to the
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Tax Court Rules of Practice and Procedure, and dollar amounts are

rounded to the nearest dollar.

     We decide this case without trial.   See Rule 122.

Petitioners petitioned the Court to redetermine a $19,728

deficiency in their 2000 Federal income tax and a $4,608

accuracy-related penalty under section 6662(a).   Following

concessions by both parties, the sole issue left to decide is

whether petitioners’ 2000 taxable income includes $88,885 of

pension income not otherwise included in that taxable income.    We

hold it does.

                            Background

     The facts in this background section are obtained from the

parties’ stipulation of facts and the exhibits submitted

therewith.   Petitioners are cash method taxpayers who resided in

Croatia when their petition was filed with this Court.

     Petitioners filed a joint 2000 Federal income tax return on

which they reported the following items of income realized by

them during 2000:

        Wages                                 $5,209
        Taxable interest                         126
        Taxable pension                       11,716
                                              17,051

Petitioners reported as to the taxable pension income that

petitioner Ivan Mirosevic (Mirosevic) had received $117,164 of

pension payments during that year but that only $11,716 of those

payments was taxable.   During 2000, Mirosevic received $100,601
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of pension payments.   The $117,164 reported by petitioners for

2000 was received in 1999.

                             Discussion

     Respondent determined that petitioners failed to report

$88,885 of pension income for 2000; i.e., the difference between

the reported amount of $11,716 and the $100,601 received by

Mirosevic during 2000.   Petitioners concede that this

determination is correct, and they make no argument that they are

not liable for Federal income taxes payable on the $88,885.    In

that a taxpayer’s gross income specifically includes income from

a pension, see sec. 61(a)(11), and that petitioners have not made

any claim that Mirosevic’s receipt of the $88,885 is otherwise

excepted from this rule, we sustain respondent’s determination as

to this issue in full.   In order to reflect respondent’s

concessions,

                                           Decision will be entered

                                      under Rule 155.
