Robert J. Hoaglund - Page 6

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                    (7) to the extent such debt is for a fine,                        
                    penalty, or forfeiture payable and for the                        
                    benefit of a governmental unit, and is not                        
                    compensation for actual pecuniary loss, other                     
                    than a tax penalty--                                              
                         (A) relating to a tax of a kind not                          
                         specified in paragraph (1) of this                           
                         subsection; or                                               
                         (B) imposed with respect to a                                
                         transaction or event that occurred                           
                         before three years before the date                           
                         of the filing of the petition; * * *                         

          Respondent asserts that the additional tax under section 72(t)              
          falls within the confines of these exceptions and therefore is              
          nondischargeable by the bankruptcy court.                                   
               Petitioner argues, in essence, that the additional tax under           
          section 72(t) is a tax penalty rather than an income tax, and that          
          the penalty is a dischargeable debt.  Petitioner further reiterates         
          his position in the petition and reply to respondent's answer that          
          the bankruptcy court has already resolved this issue through its            
          order.  Alternatively, petitioner asks us to remand the issue back          
          to the bankruptcy court for resolution.                                     
               The parties  apparently  request  us  to  determine  the               
          characterization of the deficiency arising under section 72(t) for          
          purposes of determining its dischargeability.  In this regard, we           
          note the existence of various tests for analyzing the proper                
          characterization of items as taxes for purposes of priority under           

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