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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
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Last modified: May 25, 2011