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Background
The parties submitted this case fully stipulated. The
stipulation of facts and the attached exhibits are incorporated
herein by this reference. Petitioner resided in Flower Mound,
Texas, at the time he filed his petition.
In February of 1995, petitioner withdrew $33,614.75 from his
qualified retirement savings plan. Petitioner reported the
withdrawal on his 1995 Federal income tax return but did not
report the 10-percent additional tax imposed by section 72(t)1
for an early distribution from a qualified retirement plan.
Respondent determined a deficiency of $1,643 in petitioner’s
1995 Federal income tax. In Robert L. McElroy, Jr. v.
Commissioner, T.C. Summary Opinion 2000-150, we held petitioner
liable for the 10-percent additional tax. Therein, petitioner
also argued that he should not be required to pay interest on the
deficiency. We held that we did not have jurisdiction over the
interest that accrued on petitioner’s deficiency because the
deficiency had not been assessed.
On December 19, 2000, respondent received a payment of
$1,643 from petitioner for his 1995 tax liability and a letter
contesting the related interest liability. Respondent treated
the letter as a request for interest abatement and denied the
1 Unless otherwise indicated, all section references are to
the Internal Revenue Code.
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Last modified: May 25, 2011