Michael G. Bunney - Page 12

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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),                   
               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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