-8-
percent of the amount includable in gross income for the year.
Id.
Petitioner also argues that PSRS’s 20-percent withholding on
the early distribution accounts for the 10-percent additional tax
under section 72(q) and the 10-percent additional tax under
section 72(t) and asserts that no law authorizes this
withholding. Respondent did not determine, nor do we find, that
petitioner is liable under section 72(q). See supra note 3.
Withholding of 20 percent generally is required on any eligible
rollover distribution, such as the distribution to petitioner,
unless the employee elects a direct rollover. Secs.
402(f)(2)(A), (c)(4), 3405(c). The amount withheld as tax may be
credited toward the tax liability, however. Sec. 31(a). In
fact, respondent adjusted the tax respondent determined that
petitioner owed in the deficiency notice by crediting the amount
withheld on the distribution against the amount respondent
determined petitioner owed on the premature distribution.
We therefore sustain respondent’s determination that
petitioner is liable for the 10-percent additional tax on the
early distribution.
III. Accuracy-Related Penalty
We next consider whether petitioner is liable for the
accuracy-related penalty under section 6662(a). Respondent has
the burden of production under section 7491(c) and must come
forward with sufficient evidence that is it appropriate to impose
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