Diana Cote - Page 6

          during 1999, OppenheimerFunds Services (1) distributed $179,558             
          to petitioner from one of petitioner’s retirement accounts and              
          (2) received on petitioner’s behalf $1,827 of dividends and                 
          $90,039 from the sale of stock.  The records also show that                 
          during 1999, Franklin Templeton Investor Services distributed               
          $129,074 to petitioner from another of petitioner’s retirement              
          accounts.4  The records of these two entities support the lion’s            
          share of unreported income determined by respondent, and we hold            
          that respondent has sufficiently linked petitioner to the                   
          unreported income.  See Hardy v. Commissioner, supra at 1005; cf.           
          McManus v. Commissioner, supra (sufficient link not found in                
          absence of adequate evidentiary foundation).  Given petitioner’s            
          failure to disprove respondent’s determination of unreported                
          income, as modified through concessions, we sustain the                     
          determination as modified.                                                  
          2.   10-Percent Additional Tax on Early Distributions From IRAs             
               Section 72(t) generally provides that a taxpayer is liable             
          for a 10-percent additional tax on early distributions from a               
          qualified retirement plan such as an IRA.  See also sec.                    
          4974(c)(4).  In 1999, petitioner received taxable distributions             
          of $312,029 from her IRAs; of this amount, respondent concedes              
          that $3,407 was not subject to the 10-percent additional tax.               

               4  The parties have not explained the $10 difference between           
          the $129,074 shown in the records of Franklin Templeton Services            
          and the $129,064 shown in the certified transcripts.                        

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