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Respondent determined a deficiency in petitioner’s Federal
income tax of $5,976 for the taxable year 2000.
The issues for decision are: (1) Whether petitioner’s
failure to make payments on a loan from a qualified retirement
plan resulted in a taxable distribution from that plan, and if so
(2) whether petitioner is liable for a section 72(t) additional
tax on the distribution.1
Some of the facts have been stipulated and are so found.
The stipulation of facts and the attached exhibits are
incorporated herein by this reference. Petitioner resided in
North Richland Hills, Texas, on the date the petition was filed
in this case.
Petitioner began working for General Electric (GE) Railcar
Services (GE Railcar) in 1997. Petitioner maintained a
retirement account with the GE Railcar Services Investment
Retirement Program (GE Railcar plan). In June 2000, while
petitioner was still employed at GE Railcar, he withdrew $14,500
from his GE Railcar retirement account as a loan. Under the
terms of the loan agreement, the loan principal and finance
charges were to be repaid through deductions from each of
1Petitioner does not dispute respondent’s determination that
petitioner received dividend income in the year in issue.
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