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$12,880.04 distribution from their TSP to Villanova University,
arguing that this transaction was tantamount to first rolling
over the $12,880.04 into an IRA and then distributing that amount
to Villanova University.
Discussion
Petitioners filed the 1999 tax return on April 15, 2000;
accordingly section 7491(a) is applicable in the instant case.
Neither party takes a position as to whether the burden of proof
has shifted to respondent under section 7491(a). We conclude
that, based upon the record, respondent bears the burden of
proof. Nevertheless, we further conclude that resolution of the
issue whether the 10-percent additional tax applies to the
$12,880.04 distribution from the TSP does not depend upon which
party has the burden of proof.
A 10-percent additional tax is imposed upon early
distributions from a “qualified retirement plan”. Sec.
72(t)(1).2 In the present case, petitioner’s TSP is a qualified
retirement plan, and the $12,880.04 distribution from his TSP was
2 Sec. 72(t)(1) provides:
SEC. 72(t). 10-Percent Additional Tax on Early
Distributions from Qualified Retirement Plans.--
(1) Imposition of additional tax.–-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.
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