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distribution code, indicating that petitioner received an early
distribution subject to a 10-percent additional tax.
Petitioner received a second distribution in 2001 of $7,000
from the Eagle retirement plan. ING issued to petitioner a check
for $5,460, representing the net proceeds of the $7,000
distribution (ING withheld $1,400 and $140 from the distribution
for Federal and State taxes, respectively). A Form 1099-R issued
by ING reflected the number “1” as the distribution code,
indicating that petitioner received an early distribution subject
to a 10-percent additional tax.
Respondent determined that petitioner received a third
distribution in 2001 of $7,089.95 from a CIG-sponsored retirement
plan. A Form 1099-R issued to petitioner by Merrill Lynch
reflected the letter “L” as the distribution code, indicating
that petitioner received a loan which was treated as a
distribution, subject to a 10-percent additional tax.
In December 2001, petitioner suffered physical injuries due
to a cerebral brain hemorrhage, resulting in partial memory loss.
Petitioner had not yet attained 59-1/2 years of age at the time
of the distributions in 2001.
The Internal Revenue Service (IRS) provided assistance with
the preparation of petitioner’s return. Petitioner provided the
IRS with the appropriate Form W-2, Wage and Tax Statement, and at
least some of the Forms 1099-R. Petitioner timely filed the 2001
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Last modified: May 25, 2011