Joe M. and Patricia M. Brown - Page 2

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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 the                 
          following deficiencies in petitioners' Federal income and excise            
          taxes for the taxable years 1989 and 1990:                                  
               (1)  For the taxable year 1989, respondent determined a                
          deficiency in petitioners' income tax, as well as deficiencies in           
          petitioners' excise taxes under sections 4973 and 4980A,2 in the            
          total amount of $73,905.  The deficiency in income tax includes             
          the 10-percent additional tax imposed by section 72(t) on early             
          distributions from qualified retirement plans.3                             

          1 Unless otherwise indicated, all section references are to                 
          the Internal Revenue Code in effect for 1989 and 1990, the                  
          taxable years in issue, and all Rule references are to the Tax              
          Court Rules of Practice and Procedure.                                      
          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 The notice of deficiency is not a model of clarity.                       
          However, the deficiencies determined therein for the taxable year           
          1989 are as follows:                                                        
          Deficiency in income tax                                                    
          (1) Regular income tax under sec. 1    $38,233                              
          (2) Additional tax under sec. 72(t)     22,781     $61,014                  
          Deficiencies in excise taxes                                                
          (1) Under sec. 4973                                  9,000                  
          (2) Under sec. 4980A                                 3,891                  




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