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Respondent determined deficiencies of $10,396 and $1,056 in
petitioners’ 1998 and 1999 Federal income taxes, respectively.
After concessions by the parties, the sole issue for decision is
whether petitioners are liable for the 10-percent additional tax
under section 72(t) on a pension distribution of $76,087 received
during 1998.
This case was submitted fully stipulated pursuant to Rule
122. All of the facts stipulated are so found. Petitioners
resided in Canton, Georgia, at the time they filed their
petition.
Section 7491(a) does not apply because this case involves a
legal issue.
Petitioner retired from the New Orleans Police Department
(Police Department) in 1996. He retired from the Police
Department at age 50, after completing 32 years of service.
During 1998, petitioner received $27,809.40 from his
qualified retirement plan as part of a series of equal periodic
payments from that plan. Respondent concedes that this amount is
not subject to the additional tax under section 72(t).
During 1998, petitioner withdrew $76,087 in a lump-sum
distribution of the balance of his qualified retirement plan
(lump-sum distribution). The parties agree that “All of the
distributions in this case are distributions from a qualified
pension or retirement plan under I.R.C. � 401(a) of a government
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Last modified: May 25, 2011