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a taxable event for petitioner that was not covered by section
408(d)(6).7 See Czepiel v. Commissioner, T.C. Memo. 1999-289.
Issue 2. Section 72(t)(1) Additional Tax
Respondent determined that the distributions made to
petitioner out of his IRA’s were subject to the 10-percent
additional tax on early withdrawals from an IRA imposed by
section 72(t).8 Section 72(t)(1) imposes a 10-percent additional
tax on early distributions from qualified retirement plans. A
qualified retirement plan includes an IRA. Secs. 408(a),
4974(c)(4).
Section 72(t)(2)(A) lists the types of distributions to
which the additional tax does not apply. Petitioner has the
burden of proving his entitlement to any of these exceptions.
See Matthews v. Commissioner, 92 T.C. 351, 361-362 (1989), affd.
907 F.2d 1173 (D.C. Cir. 1990). Petitioner has not produced any
7Sec. 408(d)(6) governs the transfer of an “individual’s
interest” in an IRA. It does not address distributions. In
contrast, distributions from a qualified pension plan pursuant to
a qualified domestic relations order may be reallocated to a
spouse (designated as the “alternate payee” and considered a plan
“beneficiary”). See sec. 402(e)(1)(A); 29 U.S.C. sec.
1056(d)(3)(J) (1993).
8Sec. 72(t)(1) provides:
Imposition of additional tax.--If any taxpayer receives
any amount from a qualified retirement plan (as defined
in section 4974(c)), the taxpayer’s tax under this
chapter for the taxable year in which such amount is
received shall be increased by an amount equal to 10
percent of the portion of such amount which is
includible in gross income.
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