- 4 -
the U.S. Attorney's Office recommended that, because of the
Decree of Forfeiture, the imposition of a fine was not warranted.
The sentencing court agreed with the recommendation and, on
June 23, 1992, petitioner was ordered to pay a special assessment
of $500 and was sentenced to 38 months' imprisonment for each of
the counts, with the terms of imprisonment to run concurrently
for a total of 38 months' imprisonment.
Among the accounts forfeited were petitioner's IRA's at
Merrill Lynch and Fidelity Investments (the IRA's). The total
amount forfeited from the IRA's (the IRA distributions) was
$230,161. Petitioner was 57 years old at the time of the IRA
distributions.
Petitioner reported the IRA distributions as taxable income
on his 1992 Federal income tax return. He did not include the
10-percent additional tax on early distributions from qualified
retirement plans pursuant to section 72(t) (the section 72(t)
tax). Petitioner does not meet any of the exceptions to the
section 72(t) tax provided in section 72(t)(2).2 Petitioner
claimed a Schedule C loss, that respondent disallowed, in the
amount of $273,417.47, attributed to the forfeiture.
2 The exception for distributions set forth in subparagraph
(A)(v) of sec. 72(t)(2) does not apply to IRA distributions.
Sec. 72(t)(3)(A).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011