- 19 -
requirements were satisfied for the audit year. Therefore, we
reject petitioner’s claim, raised at trial, to deductions for
three dependency exemptions.
VI. Respondent’s Section 72(t) Determination
Section 72(t) provides, in pertinent part, as follows:
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 * * *, the taxpayer’s tax * * *
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
includable in gross income.
Petitioner admits receipt of $9,022 from the National Bank
of Washington during the audit year, and he further admits that
the money was distributed from “a 401 or some type of retirement
account”, indicating his acknowledgment that the distribution is
subject to section 72(t)(1). Petitioner argues, however, that
the $9,022 constituted a net distribution and that the bank
withheld the 10-percent tax from the gross amount of the
withdrawal. Petitioner further alleges that it is common
practice for banks to collect the 10-percent additional tax on
early distributions from qualified retirement plans.
Once again, other than his self-serving testimony,
petitioner has offered no evidence in support of his position, no
bank statements or other evidence that would corroborate his
assertion that the tax was withheld or that it is common practice
Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NextLast modified: May 25, 2011