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loan from his employer’s pension plan constitutes a taxable
distribution under section 72(p). If so, we must determine
whether petitioner is liable for the 10-percent additional tax
under section 72(t) by reason of such distribution as well as
whether petitioner is liable for the section 6662(a) accuracy-
related penalty.
FINDINGS OF FACT
Certain facts have been stipulated and are so found. The
stipulation of facts and the exhibits are incorporated herein by
this reference. At the time the petition was filed, petitioner
resided in Phoenix, Arizona.
Petitioner is an attorney who practices primarily in the
fields of civil litigation and domestic relations. During the
year at issue, petitioner conducted his law practice through a
professional corporation, Clayton W. Plotkin, P.C. (the
corporation). Petitioner was the corporation’s sole director,
officer, and shareholder.
In 1982, the corporation adopted the Clayton W. Plotkin,
P.C. Money Purchase Plan (the plan), a pension plan exempt from
income taxation pursuant to sections 401(a) and 501(a). After
hiring an attorney to establish the plan, petitioner hired E.A.
Edberg and Associates (Edberg) to administer the plan. The plan
was restated in 1989, amended in 1993, and ultimately terminated
in 1999.
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