Bernadette Williams - Page 3

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               Respondent determined a deficiency of $1,609.80 in                     
          petitioner’s 2000 Federal income tax.  The issue for decision is            
          whether petitioner is liable for the 10-percent additional tax              
          imposed by section 72(t) with respect to a distribution from a              
          qualified retirement plan.                                                  
          Background                                                                  
               Some of the facts have been stipulated and are so found.  At           
          the time the petition was filed, petitioner resided in Burke,               
          Virginia.                                                                   
               Petitioner began working at the U.S. Postal Service (USPS)             
          as a mail carrier in 1985 and, at least as of the date of trial,            
          has been employed by USPS in some capacity ever since.  As an               
          employee of USPS, petitioner participated in a qualified                    
          retirement plan (the retirement plan) made available to her                 
          through her employer.1  During 1999 petitioner borrowed from, and           
          made some repayments to, the retirement plan.                               
               Petitioner began experiencing back problems in 1995.                   
          Her back problems caused her to miss work from October through              
          December 4, 1999.  During that time she stopped making loan                 
          repayments to the retirement plan.                                          




               1  The record contains little information regarding the                
          exact nature of the retirement plan.  The parties proceeded as              
          though the retirement plan is described in secs. 72(t) and                  
          4974(c), and we do likewise.                                                




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