Francisco A. Murillo - Page 9

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          IRA's are qualified retirement plans as defined in section                  
          4974(c).  Sec. 4974(c)(4).  Section 72(t)(2) provides for certain           
          exceptions, none of which apply to petitioner.                              
               Petitioner argues that the IRA distributions should not be             
          subject to the section 72(t) tax because he personally did not              
          receive the funds or receive a benefit therefrom and the                    
          withdrawals were involuntary.  Respondent counters with the                 
          assertion that, unless one of the exceptions applies, statutory             
          language requires the imposition of the addition to tax,                    
          irrespective of actual receipt by or benefit to the taxpayer or             
          the "voluntary" nature of the distribution.                                 
               Petitioner constructively received the IRA distributions               
          when his accounts were forfeited and cannot escape taxation on              
          the basis that the funds were disbursed to a third party.                   
          Larotonda v. Commissioner, 89 T.C. 287, 291 (1987) (Keogh plan              
          withdrawal pursuant to respondent's income tax levy)5; Vorwald v.           
          Commissioner, T.C. Memo. 1997-15 (IRA garnished to pay child                
          support); cf. Kochell v. United States, 804 F.2d 84 (7th Cir.               
          1986) (trustee in bankruptcy, who succeeded to rights of IRA                
          beneficiary, was held taxable on distribution used to satisfy               
          creditors of the beneficiary).                                              

               5  See also Pilipski v. Commissioner, T.C. Memo. 1993-461              
          (to the same circuit).                                                      

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