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beneficiary (or to the estate of the employee) on or after the
death of the employee; (3) on account of the employee’s
disability; (4) as part of a series of substantially equal
periodic payments made for life; (5) to an employee after
separation from service after attainment of age 55; (6) as
dividends paid with respect to corporate stock described in
section 404(k); (7) to an employee for medical care; or (8) to an
alternate payee pursuant to a qualified domestic relations order.
Petitioner did not present evidence that he comes within any
of the exceptions under section 72(t). As to petitioner’s claim
of economic hardship, general financial or emotional hardship is
not an exception from the section 72(t) additional tax. Milner
v. Commissioner, T.C. Memo. 2004-111.
Therefore, respondent’s determination that petitioner is
liable for the 10-percent additional tax on each distribution is
sustained.
Reviewed and adopted as the report of the Small Tax Case
Division.
To reflect the foregoing,
Decision will be entered for
respondent as to the deficiency,
and for petitioner as to the
penalty under sec. 6662(a).
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Last modified: May 25, 2011