3
Petitioner filed a 1993 Federal income tax return and
calculated his Federal income tax to be $6,262. Petitioner had
$2,090 in Federal income tax withheld and computed his remaining
Federal income tax liability to be $4,172.
Petitioner reported a distribution from his IRA in the
amount of $14,505.08 on his 1993 Federal income tax return, but
did not pay a 10-percent additional tax on that distribution.
In a notice of deficiency dated January 31, 1997, respondent
determined a deficiency in the amount of $1,451. This amount
represented a 10-percent additional tax on IRA distributions
pursuant to section 72.
OPINION
Under section 408(d)(1), a distribution from an IRA is
taxable to the distributee in the year of distribution in the
manner provided under section 72. Section 408(d)(3) provides an
exception to the general rule for certain "rollovers" by the
distributee; namely, where a distribution is paid to the
distributee, and the distributee transfers the entire amount of
the distribution to an IRA or an individual retirement annuity
within 60 days of receipt.
Section 72(t)(1) provides for a 10-percent additional tax on
distributions from qualified retirement plans. Section 72(t)(2)
excludes qualified retirement plan distributions from the 10-
percent additional tax if the distributions are: (1) Made on or
after the date on which the employee attains the age of 59-1/2;
(2) made to a beneficiary (or to the estate of the employee) on
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