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savings plan. Further, respondent imposed an accuracy-related
penalty due to substantial understatement of tax.
On September 18, 2002, petitioner filed a petition with the
Court disputing the notice of deficiency.
OPINION
Section 72(t) Additional Tax
Section 72(t) imposes a 10-percent additional tax on early
distributions from qualified retirement plans. There were no
disputes about the timing of the distribution or whether Aramark
Corporation’s retirement savings plan is a “qualified retirement
plan” for purposes of section 72(t). Rather, petitioner argues
that she was forced to withdraw the distribution because of
economic hardship and to save her residence from foreclosure,
and, therefore, should not be liable for the additional tax
imposed by respondent.
The 10-percent additional tax does not apply to certain
distributions from qualified retirement plans. See sec.
72(t)(2). Petitioner testified, and we have found, that she used
the distribution to refinance her house, to pay for her son’s
wedding, and to make payments on her credit cards. The evidence
shows that none of the exceptions set forth in section 72(t)(2)
apply in this case.2 We conclude that the early distribution
2 The parties do not contend that sec. 7491(a) is
(continued...)
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