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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 deficiency of $2,338 in petitioners’
2002 Federal income tax. The issue for decision is whether a
distribution from a qualified retirement plan is 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 the petition
was filed, petitioners resided in Vancouver, Washington. Unless
otherwise indicated, all references to petitioner are to Mr.
Ghazitehrani.
Beginning in 1988, petitioner worked as an engineer for the
Boeing Company (Boeing). Boeing maintained a section 401(k)
retirement plan to which petitioner contributed. In or about
1999, petitioner borrowed approximately $32,000 from the
retirement plan.
Petitioner was terminated from Boeing in 2002, when he was
approximately 53 years old. At that time, the unpaid balance of
the loan from the retirement plan was $23,378. Petitioners
reported that amount as a taxable distribution on their joint
2002 Federal income tax return but did not report a 10-percent
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Last modified: May 25, 2011