Rowland Setyono - Page 7

                                        - 6 -                                         
          as taxable.  Petitioner reported the distribution as income on              
          his 2000 Form 1040, but once again he did not report the 10-                
          percent additional tax attributable to a premature withdrawal               
          from a retirement plan.  In the notice of deficiency, respondent            
          determined that petitioner is liable for the additional tax on              
          premature distributions for each year.                                      
               Petitioner made the withdrawals to pay for his sister's                
          funeral and to stop foreclosure on one of his properties.                   
          Petitioner's sister passed away during the 1999 tax year.  She              
          had lived in Indonesia, and her funeral was held there.                     
          According to petitioner, the Muslim funeral ceremonies for his              
          sister were required to span 3 years.  In 1999, petitioner spent            
          approximately $12,000 to $15,000 for her funeral expenses.  He              
          also spent the funds he withdrew in 2000 on his sister's funeral            
          expenses.                                                                   
               At the end of 1998, First Nationwide Mortgage notified                 
          petitioner of its intent to foreclose on the Canterbury house.              
          In 1999, petitioner spent approximately $15,000 of the funds                
          distributed to him from his pension plan to avoid the                       
          foreclosure.  At the time of trial, petitioner had not yet                  
          reached the age of 59-1/2 years.                                            
                                   Discussion                                         
               The Commissioner's determinations in the notice of                     
          deficiency are presumed correct, and, generally, taxpayers must             






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011