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distributions under section 72(t) imposed on a $38,261
distribution from Mr. Barrera’s IRA.19 The balance due for
taxable year 2000 was attributable to the 10-percent additional
tax under section 72(t) imposed on IRA distributions totaling
$37,119, of which $20,000 was distributed from petitioner’s IRA.
On these facts, it appears that the unpaid taxes for
taxable years 1998 and 1999 are solely attributable to Mr.
Barrera and thus would weigh in favor of relief for those years,
but the unpaid tax for taxable year 2000 is almost equally
attributable to petitioner and Mr. Barrera and thus would not
weigh in favor of relief for that year. This is not the end of
our inquiry, however, as we believe several additional facts
should be considered under the particular circumstances of this
case.
First, Mr. Barrera’s self-employment income in 1998 and the
funds distributed from his IRA in 1999 were used in great part
for living expenses of both petitioner and Mr. Barrera, as was
the $20,000 distributed from petitioner’s IRA in 2000.
Petitioner testified, however, that she took the $20,000 IRA
19 In 1999 and 2000, petitioner, in her individual
capacity, received interest income of $79 and $19, respectively.
However, respondent stipulates that the “entire balances due” on
the 1999 and 2000 joint returns arose from the 10-percent
additional tax under sec. 72(t) imposed on the early
distributions from Mr. Barrera’s and petitioner’s IRAs.
Accordingly, petitioner’s small amounts of interest income in
1999 and 2000 do not affect our analysis of the attribution
factor.
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