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tax under section 6651(a)(1)1 of $2,481, section 6651(a)(2) in an
undetermined amount, and section 6654 of $582.
After concessions,2 the issues for decision are: (1)
Whether petitioner may deduct from his gross income under section
402 one-half of the retirement distribution he received in 1998;
(2) whether petitioner is liable for the 10-percent additional
tax on early distributions from qualified retirement plans under
section 72(t); and (3) whether petitioner is liable for the
addition to tax under section 6651(a)(1) for failure to file a
timely 1998 income tax return.
1Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the year in issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
2In the notice of deficiency, respondent determined that
petitioner had unreported income in 1998 from the following
sources: $5,008 of wages, $25 of interest income, $13 of
dividend income, $13 of capital gain, $3,139 of rental income,
and $147,492 of pension distribution. Petitioner conceded in the
stipulation of facts that he and Mrs. Barkley received the
following amounts of income for 1998: $5,009 of wages, $3,865 of
interest income, $95 of dividend income, $5,042 of capital gain,
$198,405 of rental income, and $2,144 of trust income.
On brief, respondent made the following concessions: (1)
Petitioner is not liable for additions to tax under secs.
6651(a)(2) and 6654; (2) petitioner is entitled to deduct
expenses relating to his apartment rental activity; (3)
petitioner’s 1998 filing status is married filing jointly; and
(4) petitioner’s payment of $2,000, made on or about Mar. 7,
2001, was incorrectly credited as $340, and records will be
corrected to accurately reflect the payment.
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