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Schedule A, petitioner deducted his mileage expenses for trips to
the Adams house as an employee business expense, claiming a total
deduction of $13,000, less the 2-percent AGI floor of $809.36, or
$12,190.64. Respondent disallowed petitioner's claimed deduction
for mileage expenses because petitioner did not establish that
the expenses were related to his employment.
3. Petitioner's Retirement Plan Withdrawals
In 1999, petitioner made withdrawals from two retirement
plans. A Form 1099-R, Distributions From Pensions, Annuities,
Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts,
etc., reflects that his gross distribution from the Federal
Savings Bank plan was $22,839.61. The amount comprises
$6,957.18 as a return of employee contributions and $15,882.43 as
a taxable distribution.
Petitioner's gross distribution from his Wells Fargo section
401(k) plan was $12,850. The full amount is identified on the
Form 1099-R as a taxable distribution. Petitioner reported both
distributions as income on his 1999 Form 1040, U.S. Individual
Income Tax Return. He did not, however, report the 10-percent
additional tax attributable to a premature withdrawal from a
retirement plan.
In 2000, petitioner again made a withdrawal from the Wells
Fargo section 401(k) plan. The Form 1099-R reflects that his
gross distribution was $10,793.25. The full amount is identified
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