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income tax for the taxable year 1999 in the amount of $2,655.
After a concession by petitioner,2 the only issue for
decision is whether the 10-percent additional tax pursuant to
section 72(t) applies to the $25,307.65 distribution that
petitioner received from his former employer’s profit sharing
plan. We hold that it does.
Background
Some of the facts were stipulated, and they are so found.
Petitioner resided in Dallas, Texas, at the time that the
petition was filed with the Court.
For some 12 years ending in 1999, petitioner worked for MIC
Technology Corp. (MIC) and participated in MIC’s profit sharing
plan (MIC Plan). On or about November 1, 1999, petitioner left
MIC for another employment opportunity and, therefore, cashed out
the balance of his MIC Plan in the amount of $25,307.65. MIC
sent petitioner a Form 1099-R, Distributions From Pensions,
Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance
Contracts, etc., reporting a taxable gross distribution of
$25,307.65 of which $5,061.53 was withheld for Federal income
tax. On December 16, 1999, petitioner used the net proceeds of
2 The notice of deficiency determined a deficiency of
$2,655 of which $124 represented tax on unreported interest
income, which petitioner concedes. Therefore, the amount of
deficiency at issue is $2,531.
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