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income tax return, is dedicated to the reporting of liability for
the additional tax under section 72(t).
Fifth, a useful analogy is furnished by section 1.6017-
1(b)(2), Income Tax Regs. That section provides that, as a
general rule, each spouse is jointly and severally liable for any
self-employment tax that is reported on a joint return. As
previously noted, the self-employment tax is imposed by chapter 2
of the Internal Revenue Code and is distinct from the regular
income tax imposed by section 1.
Petitioners rely heavily on In re Cassidy, 983 F.2d 161
(10th Cir. 1992), wherein the additional tax under section 72(t)
was viewed as a penalty. That case, however, is not controlling
because the Court of Appeals' holding was based on the
application of bankruptcy policy and was limited to determining
priority of claims in bankruptcy proceedings.
In view of the foregoing, we hold that petitioners are
liable for the 10-percent additional tax imposed by section
72(t). See Wittstadt v. Commissioner, T.C. Memo. 1995-492, and
cases cited therein.
III. Conclusion
In order to give effect to our disposition of the disputed
issues, as well as the parties' concessions,
Decision will be entered
under Rule 155.
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