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his illness. In September of 2003, petitioner quitted his job
and moved to Arizona.
The State of Washington’s Public Employees’ Retirement
System filed with respondent a Form 1099-R, Distributions From
Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc., reporting that petitioner received an
early distribution of $39,087.10 in 2003 (distribution). At the
time, petitioner was 50 years old.
Petitioner filed for 2003, a Form 1040, U.S. Individual
Income Tax Return, reporting the distribution as income.
Respondent subsequently issued to petitioner a statutory notice
of deficiency for 2003, determining that petitioner is liable for
an additional tax of $3,909 for an early distribution from his
retirement plan.
Discussion
The Commissioner’s determinations are presumed correct, and
generally taxpayers bear the burden of proving otherwise.1 Rule
142(a)(1); Welch v. Helvering, 290 U.S. 111, 115 (1933).
Respondent determined that, under section 72(t)(1),
petitioner is liable for a 10-percent additional tax on an early
distribution from his retirement plan. Petitioner disputes
respondent’s determination, contending that he is not liable for
1Since this case is decided by applying the law to the
undisputed facts, sec. 7491 is inapplicable.
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