Debra Sue Tussey - Page 4

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               NY Life issued to petitioner a Form 1099-R, Distributions              
          From Pensions, Annuities, Retirement or Profit-Sharing Plans,               
          IRAs, Insurance Contracts, etc., showing a gross and taxable                
          distribution of $16,117.  Petitioner has since received a                   
          corrected Form 1099-R showing her distribution amount to have               
          been $15,347.20.  Petitioner attached the original Form 1099-R              
          she received from NY Life to her Federal income tax return for              
          1999.  She reported on line 10a of the return total IRA                     
          distributions of $16,117 and on line 10b a "Taxable amount" of              
          $6,117.  Petitioner did not report on her Federal income tax                
          return a 10-percent additional tax on an early distribution from            
          a retirement plan.                                                          
               Petitioner received a statutory notice dated September 19,             
          2001, determining a deficiency of $3,036.  Petitioner received              
          from the IRS a letter dated March 18, 2002, stating that her                
          "account" had been changed and that the amount she now owed was             
          "none".  A transcript of account for petitioner's 1999 tax year             
          shows that additional tax of $3,036 was assessed on February 18,            
          2002, and subsequently abated on March 18, 2002.                            
               Petitioner argues that her tax treatment of the IRA                    
          distribution follows the advice she received over the telephone             
          from one or more IRS employees.  She further argues that the                
          March 18, 2002, letter she received stating that the amount she             

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