- 2 - Revenue Code in effect for the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. Respondent determined a $9,831 deficiency in petitioner’s 2001 Federal income tax and a $1,686 accuracy-related penalty under section 6662(a). After concessions1 by the parties, the issues for decision are: (1) Whether petitioner must include in gross income early distributions of $15,322.69 and $7,000 from separate retirement plans; (2) whether a loan petitioner received from a retirement plan is taxable as a distribution to the extent of $7,089.95; and (3) to the extent there were early distributions as described above, whether the distributions are subject to the 10-percent additional tax under section 72(t). Background Some of the facts have been stipulated, and they are so found. The stipulation of facts and the attached exhibits are incorporated herein by this reference. At the time of filing his petition, petitioner resided in San Leandro, California. In 2000 and 2001, petitioner was employed by Circle International Group, Inc. (CIG), as a building manager and engineer. During 2000 and 2001, petitioner was a participant in a CIG-sponsored section 401(k) retirement plan, and he maintained 1 Petitioner concedes that he received taxable unemployment compensation of $3,557 in tax year 2001. Respondent concedes that petitioner is not liable for a $1,686 accuracy-related penalty under sec. 6662(a).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011