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In the notice of deficiency, respondent determined a
deficiency in petitioners' excise tax under section 4980A in the
amount of $45,991.5 In an amended petition, petitioners claimed
an overpayment of income tax by electing to use the 10-year
forward averaging provisions under section 402(e)(1). Respondent
contends that petitioners do not qualify for 10-year forward
averaging because the Transfer Refund did not constitute a "lump
sum distribution" within the meaning of section 402(e)(4)(A).
OPINION
The primary issue for decision is whether petitioner Allan
R. Powell is liable for the 15-percent excise tax under section
4980A for 1990. As previously noted, the resolution of this
issue turns on whether the Transfer Refund was paid from a
qualified employer plan within the meaning of section
4980A(e)(2).
Section 4980A imposes a 15-percent excise tax on excess
distributions from qualified retirement plans. Sec. 4980A(a).
As relevant herein, an "excess distribution" is defined as the
aggregate amount of "retirement distributions" with respect to
any individual during any calendar year to the extent that such
amount exceeds $150,000. Sec. 4980A(c)(1). The definition of an
excess distribution is modified, however, for a "lump sum
5 See supra note 4 regarding respondent's concession; see
supra note 2 regarding respondent's mischaracterization of
petitioners' excise tax deficiency.
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Last modified: May 25, 2011