Gordon J. and Bonnie L. Schoof - Page 18

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               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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