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$18,420 of petitioners’ early distribution is subject to the 10-
percent additional tax, and, therefore, that petitioners are
liable for such additional tax in the amount of $1,842.4
E. Petition
Petitioners timely filed a petition with the Court disputing
the determined deficiency. Paragraph 4 of the petition states as
follows:
TWO ADJUSTMENTS ARE IN DISPUTE:
1) $12,209 Real Estate Excise Tax-Washington State
excise tax paid under Chapter 82.45RCW-Chapter 458-
61WAC is a recognized tax we paid in 1998 and should be
deductible as an itemized deduction. This tax is a
real estate tax assessed uniformly in Washington State
and used for State, community and or governmental
purposes.
2) The early IRA withdrawal penalty should not be
assessed because we had hardship education expenses in
excess of $20,000 (our calculation showed education
costs of $25,100) and in order to obtain after tax
dollars of more than $20,000, $30,000 had to be
withdrawn. Full federal taxes were paid on the
withdrawal, however I believe no penalty should be
charged on any portion of the withdrawal.
Discussion
We decide the issues in this case without regard to the
burden of proof because the facts are not in dispute and the
issues are legal in nature. See generally sec. 7491(a); Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933); New
4 The parties stipulated, however, that petitioners paid
and incurred qualified higher education expenses of $15,716.
Therefore, only $14,284 of petitioners’ early distribution is at
issue.
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