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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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