- 18 -
be fulfilled by substantial compliance. [Citations
omitted.]
Rodoni v. Commissioner, 105 T.C. 29, 38-39 (1995); see also Taylor
v. Commissioner, 67 T.C. 1071, 1077-1078 (1977).
The present case is more like Rodoni v. Commissioner, supra,
wherein we held to be fatal the failure to rollover distributions
from a profit sharing plan to an IRA for the same person from whose
plan the distributions were made. That type of error related to
the essence of the statute in that case.
Here, petitioners did not substantially comply with the
requirements of rolling over their distributions into an IRA under
section 408(a). Although we are sympathetic to petitioners'
plight, we hold the distributions out of qualified IRA's to
petitioners (in the case of petitioner Nurit Haramgaal, the
distributions out of her qualified IRA and pension plan) are
includable in petitioners' 1991 income.
Section 72(t) imposes a 10-percent additional tax on premature
distributions from retirement plans. Exceptions exist as provided
under section 72(t)(2), including distributions made on or after
the date the recipient reaches the age of 59-1/2. Sec.
72(t)(2)(A)(i). Petitioners, other than Gordon J. Schoof, William
W. Agnew, Alice M. Johnson, Joe O. Baker, and Daurine M. Baker, are
liable for the 10-percent additional tax because the record does
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