- 2 -
be entered is not reviewable by any other court, and this opinion
should not be cited as authority.
Respondent determined a deficiency in petitioners’ Federal
income tax for the taxable year 2001 in the amount of $1,671.
After a concession by petitioners,2 the issues for decision
are as follows:
(1) Whether the unpaid balance on a loan obtained by
petitioner Thomas Richard White (Mr. White) from his 401(k) plan
constitutes a taxable distribution under section 72(p). We hold
that it does.
(2) Whether petitioners are liable for the 10-percent
additional tax under section 72(t) by virtue of such
distribution. We hold that they are.
Background
Some of the facts have been stipulated, and they are so
found.
At the time that the petition was filed, petitioners resided
in St. Joseph, Tennessee.
For a number of years, Mr. White was employed by Graphic
Packaging Corp. of Lawrenceburg, Tennessee (Graphic Packaging).
As an employee of Graphic Packaging, Mr. White maintained a
401(k) account, which was administered by Fidelity Investments.
2 Petitioners concede that they neglected to report
interest income in the amount of $36 that they received from
Employee Resources Credit Union.
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