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Petitioners timely filed a petition under section 6404(h)1
contesting respondent’s determination. The only issue for
decision is whether respondent’s denial of petitioners’ claim for
abatement of all interest accrued and assessed with respect to
their 2000 tax liability was an abuse of discretion.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulation of facts is incorporated herein by this
reference. Petitioners resided in Centennial, Colorado, when the
petition in this case was filed.
During 2000 petitioners withdrew a total of $175,450.31 from
two retirement plans: $42,790.81 from a pension plan, and
$132,659.50 from a section 401(k) retirement plan, both
maintained for the benefit of Mrs. Guerrero. At the time
petitioners withdrew the funds, Mrs. Guerrero had yet to retire,
nor was she otherwise eligible to permanently withdraw funds from
either plan without incurring a 10-percent additional tax for
premature pension plan distributions pursuant to section 72(t).
Petitioners did not roll the withdrawn funds into an individual
retirement account (IRA) within 60 days of the withdrawal dates.
1Unless otherwise indicated, all section references are to
the Internal Revenue Code as amended, and all Rule references are
to the Tax Court Rules of Practice and Procedure.
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Last modified: May 25, 2011