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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.
Discussion
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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Last modified: May 25, 2011