- 2 -
Respondent determined a deficiency of $1,720 in petitioner’s
Federal income tax for 2002. The issue for decision is whether
petitioner’s higher education expenses incurred in 2003 and 2004
can be applied to reduce the amount of a distribution in 2002
subject to the 10-percent additional tax of section 72(t)(1).
Background
Some of the facts have been stipulated, and the stipulated
facts are incorporated in our findings by this reference.
Petitioner resided in Spokane, Washington, at the time that she
filed her petition.
Petitioner withdrew $17,200 from her individual retirement
plan with Putnam Investments (Putnam) in 2002. Petitioner
planned to use the money for college expenses. However,
petitioner did not enroll in college until 2003.
Petitioner timely filed Form 1040A, U.S. Individual Income
Tax Return, for 2002. Petitioner reported the $17,200
distribution from Putnam; however, she did not report the 10-
percent additional tax under section 72(t)(2)(E). The IRS
determined that petitioner received an early distribution from
her qualified retirement plan and that the taxable amount of
this early distribution was subject to a 10-percent additional
tax on the taxable amount.
Page: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011