Harald Berrey - Page 3

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               Respondent determined a deficiency in petitioner’s Federal             
          income tax of $46,076, an addition to tax of $4,874.85 pursuant             
          to section 6651(a)(1), an addition to tax of $3,791.55 pursuant             
          to section 6651(a)(2), and an addition to tax of $910.21 pursuant           
          to section 6654(a) for the taxable year 1999.                               
               The petition placed in dispute respondent’s determination as           
          to filing status, allowance of standard deduction, and all                  
          additions to tax.1  After respondent’s concessions,2 the issues             
          still in contention are:  (1) Whether petitioner is entitled to             
          claim an itemized deduction for medical expenses in excess of               
          those conceded by respondent; and (2) whether petitioner is                 
          liable for the additions to tax under sections 6651(a)(1),                  
          (a)(2), and 6654(a).  The amount of the additional 10-percent tax           
          pursuant to section 72(t) is a computational matter and will be             
          resolved by our decision on the medical expenses issue.                     




          1Petitioner, in his petition, did not dispute respondent’s                  
          determination as to the inclusion of certain items in gross                 
          income.  As a result, the amount of deficiency placed in                    
          controversy is less than $50,000.  See Rule 170; Kallich v.                 
          Commissioner, 89 T.C. 676 (1987).                                           
          2Respondent concedes medical expenses in the amount of                      
          $18,904, leaving at issue expenses in the amount of $28,666                 
          ($47,570-$18,904).  Respondent also concedes that any medical               
          expenses allowed as a deduction under sec. 213 shall be deemed              
          paid for by a portion of petitioner’s withdrawal from his thrift            
          savings plan and are therefore excepted from the additional tax             
          under sec. 72(t).  Respondent further concedes that petitioner’s            
          filing status is married filing jointly.                                    




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