Richard J. Montgomery and Adele S. Montgomery - Page 2

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                         OPINION OF THE SPECIAL TRIAL JUDGE                           
               ARMEN, Special Trial Judge:  Respondent determined a                   
          deficiency in petitioners' Federal excise tax under section 4980A           
          for the taxable year 1990 in the amount of $7,569.2  In the                 
          petition, petitioners claimed an overpayment of income tax in the           
          amount of $30,139 with respect to the additional tax imposed                
          under section 72(t).                                                        
               After a concession by respondent,3 the issues for decision             
          are:  (1) Whether petitioner Richard J. Montgomery is liable for            
          the 15-percent excise tax under section 4980A for taxable year              
          1990; and (2) whether petitioners are liable for the 10-percent             
          additional tax imposed under section 72(t) on early distributions           
          from qualified retirement plans for the taxable year 1990.  The             
          resolution of these issues turns on whether a Transfer Refund               
          distribution was paid from a qualified plan pursuant to sections            
          4980A(e)(2), 72(t), and 4974(c).                                            
                                  FINDINGS OF FACT                                    
               Some of the facts have been stipulated, and they are so                
          found.  Petitioners resided in Hagerstown, Maryland, at the time            
          that their petition was filed with the Court.                               

          2 Sec. 4980A imposes a 15-percent excise tax on excess                      
          distributions from qualified retirement plans.  This tax is                 
          included within ch. 43 of the I.R.C. and is subject to the                  
          deficiency procedures set forth in subch. B of ch. 63 of the                
          I.R.C.  See sec. 6211(a).                                                   
          3 Respondent concedes that petitioner Adele S. Montgomery is                
          not liable for the deficiency in issue herein.                              

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