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2. Whether petitioner is subject to the 10-percent
additional tax for early distributions under section 72(t). We
hold he is.
3. Whether petitioner is liable for the negligence
accuracy-related penalty. We hold he is, but only as to the
conceded items.
Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for the year in issue. Rule
references are to the Tax Court Rules of Practice and Procedure.
Dollar amounts are rounded to the nearest dollar.
Background
The stipulation of facts and the exhibits submitted
therewith are incorporated herein by this reference. Petitioner
was born on August 23, 1944. He resided in California when the
petition in this case was filed.
Petitioner was formerly married. He and his former spouse
were granted a Judgment of Dissolution of Marriage (dissolution
judgment) on August 17, 1992. The dissolution judgment stated:
“IT IS FOUND that all of MICHAEL BUNNEY’S retirement valued at
approximately $120,000 was accumulated by the parties prior to
their separation and ordered to be divided equally between the
parties.”
Petitioner’s retirement savings consisted of several IRA
accounts. The money used to fund petitioner’s IRA’s had been
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