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statutory amendments are effective only with respect to
distributions made after December 31, 2001. Economic Growth and
Tax Relief Reconciliation Act of 2001, sec. 644(c), 115 Stat.
123. Moreover, even if applicable, the provisions do not speak
to this Court’s authority to waive the additional tax on
premature withdrawals. No similar amendments were made to the
list of exceptions in section 72(t)(2).
Second, petitioners direct our attention to Doing v.
Commissioner, 58 T.C. 115 (1972). In that case, the taxpayer
sought in 1966 to transfer his assets from one retirement plan to
another. Id. at 119-120. He requested in writing that the
custodian of the first plan liquidate his investments and forward
the proceeds directly to the custodian for the new plan. Id. at
120. Thereafter, the custodian of the first plan, ignoring the
taxpayer’s instructions, sent the resultant check to the
taxpayer, who promptly endorsed the instrument and had it
forwarded to the new custodian. Id. at 121-122. The Court held
that the taxpayer was not liable for the penalty on premature
distributions under former section 72(m)(5). Id. at 129-131.
Doing v. Commissioner, supra, is alas distinguishable from
petitioners’ situation. As alluded to previously, cases decided
under former section 72(m)(5), which did not contain a detailed
list of exceptions comparable to present section 72(t), provide
little authority for departure from the current legislative
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Last modified: May 25, 2011