- 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 ofPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011