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in his customary or any comparable substantial gainful activity.”
Sec. 1.72-17A(f)(4), Income Tax Regs.
According to respondent, petitioner was not disabled within
the meaning of section 72(m)(7). We agree.
Although petitioner suffered from chronic back problems over
the years, he continued to work as a heavy equipment operator
until 2002. In fact, after receiving the distribution,
petitioner worked “six days a week, 12 hours a day.”
We find that petitioner’s chronic back problems did not
prevent him from returning, and, in fact, petitioner did return,
to comparable substantial gainful activity as a heavy equipment
operator. Therefore, we find that petitioner was not disabled
within the meaning of section 72(m)(7) at the time of the
distribution. Accordingly, petitioners are liable for the 10-
percent additional tax pursuant to section 72(t).
3. The Section 6662(a) Penalty
Section 6662(a) imposes an accuracy-related penalty of 20
percent of any portion of an underpayment of tax that is
attributable to a substantial understatement of income tax.
Sec. 6662(b)(2), (d). An understatement of income tax is a
substantial understatement of income tax if it exceeds the
greater of $5,000 or 10 percent of the tax required to be
shown on the taxpayer’s return. Sec. 6662(d)(1). Ignoring
conditions not relevant here, for purposes of section 6662, an
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