-2- as to any part of the distributions used for her 1999 and 2000 expenses; to escape that tax, sec. 72(t)(2)(E), I.R.C., requires that qualified higher education expenses be for the taxable year of the distribution. Linda Louise Lodder-Beckert and Timothy Beckert, pro sese. Terry Serena, for respondent. MEMORANDUM FINDINGS OF FACT AND OPINION LARO, Judge: Petitioners petitioned the Court to redetermine a $2,476.35 deficiency in their 2001 Federal income tax and a related $929.84 late filing addition to tax under section 6651(a)(1).1 The deficiency stems in part from respondent’s determination that petitioners are liable for a 10-percent additional tax under section 72(t)(1) on $20,000 that petitioner2 received in 2001 through two distributions from her individual retirement account (IRA). The deficiency also is attributable to respondent’s determination that petitioners were not entitled to a $476.35 rate reduction credit. Respondent concedes that petitioners are entitled to the rate reduction credit and that they are not liable for the 1 Unless otherwise noted, section references are to the applicable versions of the Internal Revenue Code, and Rule references are to the Tax Court Rules of Practice and Procedure. 2 When used in the singular, the term “petitioner” refers to Linda Louise Lodder-Beckert.Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011