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Petitioners' Federal Income Tax Return
On their Federal income tax return (Form 1040) for 1991,
petitioners reported the taxable portion of the Transfer Refund
and the taxable portion of petitioner's annuity payments as
ordinary income. In the notice of deficiency, respondent
characterized petitioner's retirement distributions over $150,000
as an excess distribution from a qualified retirement plan.6
Respondent then determined that petitioners were liable for the
excise tax under section 4980A.7
Discussion
The only issue for decision is whether petitioners are
liable for the 15-percent excise tax for an excess retirement
distribution under section 4980A. The resolution of this issue
turns on whether the Transfer Refund was paid from a defined
benefit plan, as respondent contends, or from a defined
contribution component of a defined benefit plan described in
section 414(k), as petitioners contend.
6 The Forms 1099-R (Total Distributions From Profit-Sharing
Plans, Individual Retirement Arrangements, Insurance Contracts,
Etc.) issued by the Maryland State Retirement Agency indicate
that the taxable portion of the Transfer Refund was $378,585.
Petitioners reported the taxable portion of the Transfer Refund
on their 1991 income tax return consistent with the Forms 1099-R.
Likewise, respondent determined the amount of the excess
distribution based on the taxable portion reported on the Forms
1099-R. However, the parties stipulated that the taxable portion
of the Transfer Refund was $378,053.86. The parties' stipulation
appears to account for an error on one of the Forms 1099-R. In
any event, we give effect to the stipulation.
7 See supra note 3 regarding respondent's concession as to
petitioner Harold E. Emmons.
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