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the entire distribution as the taxable amount, which he included
in gross income.
Discussion
In general, the Commissioner’s determinations in a notice of
deficiency are presumed correct, and the taxpayer bears the
burden of showing that those determinations are erroneous. Rule
142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992);
Welch v. Helvering, 290 U.S. 111, 115 (1933). Pursuant to
section 7491(a), the burden of proof as to factual matters may
shift to the Commissioner under certain circumstances. We decide
this case without regard to the burden of proof. Accordingly, we
need not decide whether section 7491(a) applies in this case.4
Section 72(t)(1) imposes an additional tax on an early
distribution from a qualified retirement plan equal to 10 percent
of the portion of the amount that is includable in gross income.
A qualified retirement plan includes a section 401(k) plan and an
IRA. See secs. 401(a), (k)(1), 408(a), 4974(c)(1). The 10-
percent additional tax is intended to discourage premature
distributions from retirement plans. Dwyer v. Commissioner, 106
4 Pursuant to sec. 7491(c), the Commissioner bears the
burden of production with respect to any penalty, addition to
tax, or additional amount. Even if the 10-percent additional tax
under sec. 72(t) is an “additional amount” for which respondent
bears the burden of production, respondent has met such burden by
demonstrating that petitioner was 46 years old in 2003 when he
received the distribution in issue. See Milner v. Commissioner,
T.C. Memo. 2004-111 n. 2.
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