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distribution is attributable to the tax consequences associated
with such withdrawal) is not addressed by any of the express
statutory exceptions to the early withdrawal tax. Further, there
is nothing in the legislative history of section 72(t) nor in the
case law to support an exception for the portion of an early
distribution used to pay for the tax effect of a distribution
taken for qualified higher education expenses.
The Tax Court is a court of limited jurisdiction and lacks
general equitable powers. Commissioner v. McCoy, 484 U.S. 3, 7
(1987); Hays Corp. v. Commissioner, 40 T.C. 436, 442-443 (1963),
affd. 331 F.2d 422 (7th Cir. 1964). Consequently, our
jurisdiction to grant equitable relief is limited. Woods v.
Commissioner, 92 T.C. 776, 784-787 (1989); Estate of Rosenberg v.
Commissioner, 73 T.C. 1014, 1017-1018 (1980). Although we
acknowledge that petitioners used the IRA distribution for
laudable purposes, absent some constitutional defect we are
constrained to apply the law as written, see Estate of Cowser v.
Commissioner, 736 F.2d 1168, 1171-1174 (7th Cir. 1984), affg. 80
T.C. 783, 787-788 (1983), and we may not rewrite the law because
we may “‘deem its effects susceptible of improvement’”,
Commissioner v. Lundy, 516 U.S. 235, 252 (1996) (quoting
Badaracco v. Commissioner, 464 U.S. 386, 398 (1984)).
Accordingly, petitioners’ appeal for relief must, in this
instance, be addressed to their elected representatives. “The
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