- 3 -
obtained an extension of time within which to timely file his
1998 tax return.
Discussion
Distributions From Retirement Plans
Section 72(t)(1) provides:
If any taxpayer receives any amount from a qualified
retirement plan (as defined in section 4974(c)), the
taxpayer’s tax under this chapter for the taxable year in
which such amount is received shall be increased by an
amount equal to 10 percent of the portion of such amount
which is includible in gross income.
A “qualified retirement plan” is defined as, inter alia, “a
plan described in section 401(a) which includes a trust exempt
from tax under section 501(a)”. Sec. 4974(c)(1). Petitioner
contends that the ESOP was not a qualified retirement plan. The
record is devoid of any factual bases for this assertion.
Furthermore, respondent introduced into evidence a letter from
respondent that determined that the ESOP was a qualified
retirement plan. See sec. 409. We find that the ESOP was a
qualified retirement plan.3
With regard to the distribution from the section 401(k)
plan, petitioner does not dispute that it was a qualified
3 Sec. 7491(a) provides that the burden of proof as to a
factual issue shifts to respondent if petitioner introduces
credible evidence as to that issue. Assuming, but not deciding
that this issue is factual, petitioner did not introduce credible
evidence to support a contrary position, and sec. 7491(a) is
inapplicable.
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011