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additional tax imposed by section 72(t). Respondent determined
that the additional tax was due, and the dispute is now before
this Court.
Section 72(t) provides that:
(1) * * * If any taxpayer receives any amount from a
qualified retirement plan (as defined in section 4974(c)),
the taxpayer’s tax * * * shall be increased by an amount
equal to 10 percent of the portion of such amount which is
includible in gross income.
Section 72(t)(2) provides certain exceptions to this
additional tax, none of which, petitioner concedes, are
applicable here. It also is not contested that petitioner’s IRA
meets the definition of qualified retirement plans within the
meaning of section 72(t).
Petitioner relies on Larotonda v. Commissioner, 89 T.C. 287
(1987), for the proposition that the section 72(t) additional tax
is inapplicable to the distribution here. In Larotonda,
respondent levied on a taxpayer’s IRA, forcing an early
distribution. The Court held that the taxpayer was not liable
for the section 72(t) additional tax. Unlike the situation in
Larotonda, however, there was no levy by respondent in this case.
Similarly, in Murillo v. Commissioner, T.C. Memo. 1998-13,
affd. without published opinion 166 F.3d 1201 (2d Cir. 1998),
also cited by petitioner, the taxpayer was indicted on charges of
violating Federal currency transaction reporting laws. As part
of the taxpayer’s plea agreement, all funds on deposit in several
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