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Respondent determined a deficiency in petitioners’ Federal
income tax for the taxable year 2001 of $4,046. The deficiency
is attributable solely to the 10-percent additional tax under
section 72(t) on an early distribution from a qualified
retirement plan.
After petitioners’ partial concession concerning the amount
of the deficiency in dispute,2 the sole issue for decision is
whether petitioners are liable under section 72(t) for the 10-
percent additional tax on an early distribution from petitioner
Linda L. Domanico’s section 401(k) qualified retirement plan
(401(k) plan). We hold that they are.
Background
Some of the facts have been stipulated, and they are so
found. We incorporate by reference the parties’ stipulation of
facts and accompanying exhibits.
At the time that the petition was filed, petitioners resided
in Lindenhurst, New York.
From 1978 to 1996, petitioner Linda L. Domanico (Mrs.
Domanico) worked as a flight attendant for Trans World Airlines,
2 On or about Dec. 11, 2003, petitioners paid to respondent
$931 in respect of the $4,046 deficiency representing the 10-
percent additional tax under sec. 72(t) on $8,560 of petitioner
Linda L. Domanico’s 401(k) plan distribution, which portion
petitioners conceded was not used for higher education expenses,
plus interest thereon. However, as discussed infra in the text,
the distribution of $40,457 less her education expenses of
$32,147 equals $8,310. This discrepancy is not explained in the
record.
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