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Opinion of the Special Trial Judge, which is set forth below.
OPINION OF THE SPECIAL TRIAL JUDGE
ARMEN, Special Trial Judge: Respondent determined a
deficiency in petitioners' Federal income tax for the taxable
year 1990 in the amount of $33,676.17. This amount includes the
10-percent additional tax imposed by section 72(t) on early
distributions from qualified retirement plans.
The pivotal issue for decision is whether the Transfer
Refund distribution received by petitioner Harold L. Humberson in
1990 from the Maryland State Teachers' Retirement System
qualifies for forward averaging under section 402(e)(1). The
resolution of this issue turns on whether the Transfer Refund
distribution constitutes a "lump sum distribution" within the
meaning of section 402(e)(4)(A).
Also for decision are: (1) Whether petitioners are liable
for the 10-percent additional tax imposed by section 72(t) on an
early distribution from a qualified retirement plan; and, if
petitioners are liable for any deficiency in tax, (2) whether
they are liable for interest on such deficiency.
FINDINGS OF FACT
Some of the facts have been stipulated, and they are
generally so found.2 Petitioners resided in Grantsville,
Maryland, at the time their petition was filed with the Court.
2 See infra notes 4 and 5. See also infra note 17 regarding
respondent's claim of an increased deficiency.
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