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jurisdiction over that year. See Commissioner v. Gooch Milling &
Elevator Co., 320 U.S. 418 (1943). Moreover, in deciding
petitioners' liability for additional tax under section 72(t) for
1989, we fail to appreciate the relevance of petitioners'
original reporting position for 1991. Cf. sec. 6214(b). Apart
from the fact that the District Court might rule in petitioners'
favor in their refund action, we are aware of the annual
accounting principle, which holds that taxable income is
determined on an annual, rather than on a transactional, basis.
Burnet v. Sanford & Brooks Co., 282 U.S. 359, 365-366 (1931). We
have therefore approached the issue of petitioners' liability for
additional tax under section 72(t) for 1989 with regard only for
the facts and law pertaining to that year.
Alternatively, petitioners contend that even if petitioner
Rhett B. Ross is liable for the additional tax under section
72(t), petitioner Sandra L. Ross is not so liable. In this
regard, petitioners contend that the joint and several liability
provision of section 6013(d)(3) applies only to income taxes, and
that the additional tax under section 72(t) is a penalty and not
a tax. We think that petitioners' contention is without merit
for the following reasons.
First, section 72(t) denominates the exaction that it
imposes as a "tax" and not as a "penalty". Other sections of the
Internal Revenue Code denominate the exactions that they impose
as "penalties" or "additions to tax". See, e.g., section 6651(a)
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