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all Rule references are to the Tax Court Rules of Practice and
Procedure.
The sole issue for decision is whether petitioners qualify
for an exception under section 72(t)(2)(E) to a section 72(t)(1)
10-percent additional tax with respect to an early distribution
from an individual retirement account (IRA).
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
At the time the petition was filed, petitioners resided in
Bogota, New Jersey.
During the 2002 spring and fall semesters, petitioners’ son
attended New York University (NYU) full time and resided in an
NYU dormitory.
In December of 2001, apparently out of family savings and
resources, petitioners made an $18,000 tuition payment to NYU on
behalf of their son.
In the fall of 2002, to finance his educational expenses,
petitioners’ son obtained a $19,263 student loan.
In 2002, neither petitioners nor their son made any
repayments on the above student loan, and petitioners did not
make tuition payments on behalf of their son.
Sometime in 2002, petitioner Mary Duronio received a
$19,900 early distribution from her IRA. At the time of the
distribution Mary had not attained age 59-1/2.
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Last modified: November 10, 2007