111 T.C. No. 12
UNITED STATES TAX COURT
ROBERT C. AND NANCY L. ARNOLD, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 16855-97. Filed September 28, 1998.
In December 1989, following P's retirement, P began
receiving annual distributions from his individual
retirement account (IRA). At that time, P was 55 years
old. The distributions were intended to constitute a
series of substantially equal periodic payments within
the purview of sec. 72(t)(2)(A)(iv), I.R.C., so as to
avoid P's having to pay the 10-percent tax pursuant to
sec. 72(t)(1), I.R.C. In November 1993, after five
distributions of $44,000 each had been made, and when P
attained age 59-1/2, P received $6,776 from his IRA. In
the notice of deficiency, R determined that the November
1993 distribution impermissibly modified the series of
substantially equal periodic payments within the 5-year
period beginning on the date of the first distribution,
and therefore the 10-percent recapture tax under sec.
72(t)(4), I.R.C., should be imposed on all distributions
P received prior to attaining age 59-1/2. P contends
that the series of substantially equal periodic payments
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