Tommy L. and Patricia A. Hobson - Page 4

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          unless otherwise provided, any amount paid or distributed from an           
          employee's trust described in section 401(a) is includable in the           
          recipient's gross income for the year of receipt in the manner              
          provided under section 72.  These statutes apply to petitioner's            
               Section 72(t) provides:                                                
                    (1) Imposition of additional tax.--If any taxpayer                
               receives any amount from a qualified retirement plan                   
               * * *, the taxpayer's tax * * * for the taxable year in                
               which such amount is received shall be increased by an                 
               amount equal to 10 percent of the portion of such                      
               amount which is includible in gross income.                            
               Section 72(t)(2) provides for certain exceptions to the                
          general rule contained in paragraph (1).  Petitioner, however,              
          provided no evidence to suggest that she fit within any of these            
          enumerated exceptions.  The legislative history suggests that one           
          of the reasons for enacting section 72(t) was to deter the use of           
          retirement savings for nonretirement use.  H. Rept. 99-426                  
          (1985), 1986-3 C.B. (Vol. 2) 1, 728-729; S. Rept. 99-313 (1986),            
          1986-3 C.B. (Vol. 3) 1, 612-613.  Petitioner received an early              
          distribution from her profit sharing plan in taxable year 1990,             
          and petitioners' having failed to show that any of the exceptions           
          found in section 72(t)(2) apply, we find that petitioners are               
          liable for the 10-percent additional tax pursuant to section                
          72(t) as determined by respondent.  See Aronson v. Commissioner,            
          98 T.C. 283 (1992).                                                         

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