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Skelly Oil Co., 394 U.S. 678, 684 (1969); Charles Ilfeld Co. v.
Hernandez, 292 U.S. 62, 68 (1934). Only if the language of the
statute compelled it “would we reach a result apparently so at
odds with accepted tax policy.” Darby v. Commissioner, supra at
68.
We find that petitioner did not have a basis in the 1999
distribution from his section 401(k) plan, and that petitioner
properly included the full distribution in his 1999 gross income.
Accordingly, we hold that petitioner is liable for the 10-percent
additional tax under section 72(t) on the $50,674 distribution
from his TESPHE account.
We have considered all of the other arguments made by
petitioner, and, to the extent that we have not specifically
addressed them, we conclude they are without merit.
Reviewed and adopted as the report of the Small Tax Case
Division.
To reflect the foregoing,
Decision will be entered
for respondent.
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Last modified: May 25, 2011