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taxable income by $150,000.11 As corollaries to this
determination, respondent also determined that petitioners are
liable for: (1) The additional tax under section 72(t) for a
premature distribution from the Retirement System; (2) the excise
tax under section 4980A for an excess distribution from the
Retirement System; and (3) the excise tax under section 4973 for
an excess contribution to petitioner's IRA with First National.12
Petitioners' 1990 Income Tax Return
On their income tax return for 1990, petitioners reported
taxable interest in the total amount of $154,613. Of this
amount, $150,000 represented a distribution from petitioner's IRA
with First National, which petitioners characterized as an early
withdrawal. The balance represented interest income from
unrelated bank accounts.
11 The notice of deficiency, which was issued by
respondent's Appeals Office in Baltimore, Maryland, states as
follows:
Your gross income has been increased to include the
amount of $150,000 you received as payment from your
qualified retirement plan because you received the
payment before you reached aged [sic] 59 1/2 or became
disabled. Accordingly, taxable income is increased
$150,000.
Respondent repeatedly cross-referenced the foregoing paragraph by
way of explanation for most of the other adjustments made in the
notice of deficiency.
12 See supra note 6 regarding respondent's concession of the
excise taxes as to petitioner Patricia M. Brown.
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