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Respondent determined deficiencies in petitioners’ Federal
income taxes for the taxable years 1997 and 1998 in the amounts
of $5,400 and $1,228, respectively.2
After a concession by respondent,3 the issue for decision is
whether petitioners are liable under section 72(t) for the 10-
percent additional tax on early distributions from qualified
retirement plans. We hold that they are.
Background
Some of the facts have been stipulated, and they are so
found. Petitioners resided in Chicago, Illinois, at the time
that their petition was filed with the Court.
Petitioner Mary G. Keeley (Mrs. Keeley) worked part-time for
the West Chicago School District in 1997 for a time period not
disclosed in the record. From the end of December 1997 to the
present, Mrs. Keeley has been working for Tyndale House
Publishers.
Petitioner Brian P. Keeley (Mr. Keeley) worked as a leasing
manager with Hughes Enterprises, a commercial laundry equipment
distributor, for some time until August 1996. In August 1996,
Mr. Keeley left Hughes Enterprises because he was dissatisfied
with the annual reduction in his base salary and commission
2 All numbers are rounded to the nearest dollar.
3 At trial, respondent conceded the erroneous disallowance
of a $400 child tax credit that petitioners claimed in 1998.
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