William Anthony Knipp - Page 3

                                        - 2 -                                         
               Respondent determined a deficiency in Federal income tax for           
          petitioner’s 2002 taxable year.  After concessions, the amount in           
          dispute is $2,352.  The issue we must decide is whether                     
          petitioner is liable for the 10-percent additional tax on early             
          distributions pursuant to section 72(t) due to a distribution               
          from his qualified retirement plan.                                         
                                     Background                                       
               At the time of filing the petition in the instant case,                
          petitioner resided in Jacksonville, Florida.  During taxable year           
          2002, petitioner received a $23,520.78 distribution from a                  
          qualified retirement plan with Financial Administrative Services            
          Corporation (FASC).  The Form 1099-R, Distributions From                    
          Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,              
          Insurance Contracts, etc., issued by FASC characterized the                 
          distribution as a taxable early distribution.  Petitioner                   
          reported the distribution as income on his 2002 tax return but              
          did not report the 10-percent additional tax on his 2002 tax                
          return.                                                                     
                                     Discussion                                       
               We decide the instant case on the record without regard to             
          section 7491(a).  Section 72(t)(1) imposes a 10-percent                     
          additional tax on early distributions from qualified retirement             
          plans unless the distribution meets one of the exceptions                   
          enumerated in section 72(t)(2).  Petitioner was 45 years old as             






Page:  Previous  1  2  3  4  Next

Last modified: May 25, 2011