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Cir. 1965); Bagnell v. Commissioner, T.C. Memo. 1993-378. The
Court cannot disregard statutory terms, even when the result in a
particular case seems harsh. INS v. Pangilinan, 486 U.S. 875,
883 (1988); Estate of Cowser v. Commissioner, 736 F.2d 1168,
1171-1174 (7th Cir. 1984), affg. 80 T.C. 783, 787-788 (1983).
The Court will follow the statutory provisions governing the
issue in this case. With exceptions not applicable here, any
amount distributed from an IRA must be included in income by the
distributee as provided by section 72. Sec. 408(d). Therefore,
the entire IRA distribution2 petitioner received in 1999 is
includable in her income for the year. In addition, section
72(t) provides that if a taxpayer receives any amount from a
qualified retirement plan, the taxpayer's tax "shall be increased
by an amount equal to 10 percent of the portion of such amount
which is includible in gross income."
There is an exception to the additional tax required by
section 72(t) in the case of "qualified first-time homebuyer
distributions". Sec. 72(t)(2)(F). The maximum amount of a
distribution that may be treated as a qualified first-time
homebuyer distribution, however, is $10,000. Sec. 72(t)(8)(B).
Any amount of a distribution that petitioner received in excess
2For purposes of sec. 72, all IRA distributions during the
year are treated as one distribution. Sec. 408(d)(2).
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