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The issue for decision is whether petitioner is liable for a
10-percent additional tax under section 72(t)(1)1 on a $10,500
distribution from her individual retirement account (IRA).
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulation of facts and the attached exhibits are
incorporated herein by this reference. At the time the petition
was filed, petitioner resided in La Jolla, California.
In 1995, at the age of 52, petitioner received an IRA
distribution from Smith Barney, Inc., of $10,500. Petitioner did
not roll over the IRA distribution into another qualified IRA.
Petitioner reported the $10,500 distribution on her 1995 Federal
income tax return as a taxable IRA distribution but did not
compute the additional 10-percent additional tax due for
premature distribution.
In a notice of deficiency dated December 31, 1995,
respondent determined a deficiency of $1,050. This amount
represented a 10-percent additional tax on IRA distributions
pursuant to section 72.
OPINION
Under section 408(d)(1), a distribution from an IRA is
taxable to the distributee in the year of distribution in the
1
Unless otherwise indicated, section references are to
the Internal Revenue Code in effect for the year in issue.
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