- 5 -
the income tax or from the 10-percent additional tax imposed by
statute based on their financial hardship. However, there is no
exception under section 72(t) for financial hardship. This
principle has been applied consistently in cases dealing with
premature IRA distributions. See Arnold v. Commissioner, supra
at 255; Deal v. Commissioner, T.C. Memo. 1999-352; Pulliam v.
Commissioner, T.C. Memo. 1996-354. Thus, the IRA distribution
received by petitioners is taxable in 1997 and is also subject to
the 10-percent additional tax under section 72(t).
To reflect the foregoing,
Decision will be entered
for respondent.
Page: Previous 1 2 3 4 5
Last modified: May 25, 2011