- 2 -
Respondent determined a deficiency in petitioner’s 1997
Federal income tax in the amount of $14,148, and a penalty under
section 6662(a) in the amount of $2,830. Respondent conceded
that petitioner was not liable for $19,990 of additional income,
or for the section 6662(a) penalty. The sole issue the Court
must decide is whether petitioner is liable for the 10-percent
additional tax under section 72(t).
Some of the facts in this case have been stipulated and are
so found. Petitioner resided in Schaumburg, Illinois, at the
time he filed his petition.
In 1997, petitioner Patrick L. O’Brien (petitioner) received
a distribution of a rounded amount of $51,623 from a defined
benefit plan, and a distribution of a rounded amount of $27,846
from an employee stock ownership plan, for a total of $79,469.
Hereinafter, both distributions will be referred to as one
distribution. On his 1997 Federal income tax return, petitioner
reported that $37,848 of the $79,469 distribution was taxable.
Respondent determined that the section 72(t) additional tax
on early distributions applied to $79,467. The parties
stipulated that this amount should have been $79,469. The
difference appears to be due to rounding, and we shall use the
stipulated amount. Respondent now concedes that $41,621 of the
distribution is not subject to the section 72(t) additional tax.
Therefore, respondent now asserts that only the taxable amount of
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011