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OPINION OF THE SPECIAL TRIAL JUDGE
ARMEN, Special Trial Judge: For the taxable year 1989,
respondent determined a deficiency in petitioners' Federal income
tax, as well as deficiencies in petitioners' Federal excise taxes
under sections 4973 and 4980A,2 in the total amount of
$34,974.34. The deficiency in income tax 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 distribution
received by petitioner Rhett B. Ross in 1989 from the Maryland
State Teachers' Retirement System qualifies for tax-free rollover
treatment under section 402(a)(5). The resolution of this issue
turns on whether the distribution constitutes a "qualified total
distribution" as defined by section 402(a)(5)(E)(i). If we
conclude that the distribution in question does not qualify for
tax-free rollover treatment, then we must also decide whether
petitioners are liable for the 10-percent additional tax under
section 72(t).3
2 Sec. 4973 imposes a 6-percent excise tax on excess contributions to
individual retirement accounts. Sec. 4980A imposes a 15-percent excise tax on
excess distributions from qualified retirement plans. Both of these taxes are
included within ch. 43 of the I.R.C. They are therefore subject to the
deficiency procedures set forth in subch. B of ch. 63 of the I.R.C. See sec.
6211(a).
3 At trial, respondent conceded that the notice of deficiency overstates
the amount of the deficiency in excise tax under sec. 4973 and that the
correct amount of such deficiency is $4,080 rather than $4,200. On brief,
respondent conceded that petitioner Sandra L. Ross is not liable for any
deficiency in excise tax under either sec. 4973 or 4980A. At trial,
petitioner Rhett B. Ross conceded liability for the 15-percent excise tax
under section 4980A, and on brief he effectively conceded liability for the 6-
percent excise tax under section 4973 by abandoning the issue. See Money v.
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