Dennis W. Farley, Jr. and Janice J. Farley - Page 3

                                        - 2 -                                         

          is not reviewable by any other court, and this opinion should not           
          be cited as authority.                                                      
               In the notice of deficiency, respondent determined the                 
          following deficiencies in Federal income taxes against                      
          petitioners for the years indicated:                                        

                           Year              Deficiency                               
                           1995              $6,713                                   
                           1996              8,000                                    
                           1997              8,200                                    

          The sole issue for decision is whether petitioners are liable for           
          the 10-percent additional tax on early distributions from                   
          qualified retirement plans under section 72(t)(1) for the years             
          at issue and, more particularly, whether the distributions in               
          question constitute “part of a series of substantially equal                
          periodic payments (not less frequently than annually) made for              
          the life (or life expectancy) of the employee” within the intent            
          and meaning of section 72(t)(2)(A)(iv).2                                    
               Some of the facts were stipulated.  Those facts, with the              
          annexed exhibits, are so found and are made part hereof.                    



               2    Respondent also determined that a $17,125 loan to                 
          petitioners from one of their qualified plans during 1995                   
          constituted a deemed distribution under sec. 72(p) and was also             
          subject to the additional tax under sec. 72(t)(1).  Petitioners             
          did not challenge that adjustment at trial; consequently, the               
          Court considers that adjustment as conceded by petitioners.                 





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011