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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
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