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the amount of $33,590. Petitioners did not report, on their 2001
return, the additional 10-percent tax imposed by section 72(t)
with respect to the $33,590 distribution.
In the notice of deficiency, respondent determined that
petitioners are liable for the 10-percent additional tax on the
early distribution from petitioner’s IRA. Petitioners
acknowledge that the distribution from the IRA does not qualify
for any of the exceptions under section 72(t)(2)(A).
Discussion
Section 72(t)(1) imposes an additional tax on early
distribution from qualified retirement plans equal to 10 percent
of the portion of such amount which is includable in gross
income. A qualified retirement plan includes a qualified pension
or profit sharing plan under section 401(a). Sec. 401(a)(1).
The section 72(t) additional tax does not apply to certain
distributions. Since petitioners concede that they do not come
within any of the exceptions under section 72(t)(2)(A), we
consider whether any other provisions would permit petitioners to
be relieved from the 10-percent additional tax.
Section 72(t)(2)(F) provides, in relevant part, an exception
to the 10-percent additional tax for distributions to an
individual from an individual retirement plan which are qualified
first-time home buyer distributions. A qualified first-time home
buyer distribution is any payment or distribution received by an
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Last modified: May 25, 2011