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Rules 180, 181, and 183.1 The Court agrees with and adopts the
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 $15,887. Respondent also determined
that petitioners are liable for an excise tax under section 4980A
for the taxable year 1990 in the amount of $5,514.2
The only issue for decision is whether the Transfer Refund
distribution received by petitioner C. Merritt Pumphrey in 1990
from the Maryland State Employees' 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).
Irrespective of how we decide the issue in dispute,
petitioner C. Merritt Pumphrey concedes that he is liable for the
excise tax under section 4980A. In contrast, respondent concedes
that petitioner Dorothy Pumphrey is not liable, by virtue of
1 Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the taxable year in
issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
2 Sec. 4980A imposes a 15-percent excise tax on excess
distributions from qualified retirement plans. This tax is
included within ch. 43 of the I.R.C. It is therefore subject to
the deficiency procedures set forth in subch. B of ch. 63 of the
I.R.C. See sec. 6211(a).
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