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Notice of Deficiency
In the notice of deficiency, respondent determined that the
November 1993 distribution to petitioner was an impermissible
modification of a series of substantially equal periodic payments.
As a result, respondent determined that the 10-percent recapture
tax under section 72(t)(4) should be imposed on all distributions
made prior to the date petitioner attained age 59-1/2.
OPINION
The sole issue for decision is whether the November 1993
distribution from petitioner's IRA impermissibly modified a series
of substantially equal periodic payments so as to trigger the
imposition of the 10-percent recapture tax under section 72(t)(4).
Generally, amounts distributed from an IRA are includable in
gross income as provided in section 72. Sec. 408(d)(1).
Additionally, a 10-percent tax is imposed under section 72(t)(1) on
any distribution that fails to satisfy one of the exceptions for
premature distributions as provided in section 72(t)(2). Section
72(t)(2) states in pertinent part:
(2) Subsection not to apply to certain distributions.
--Except as provided in paragraphs (3) and (4),
paragraph (1) shall not apply to any of the following
distributions:
(A) In general.--Distributions which are--
* * * * * * *
(iv) part of a series of
substantially equal periodic
payments (not less frequently than
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Last modified: May 25, 2011