Steven Rudolph Kaldi - Page 6

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               Comparable to a refund suit, petitioner bears the burden of            
          proving the error in his self-assessment.  See, e.g., Brown v.              
          United States, 890 F.2d 1329, 1334 (5th Cir. 1989).  Petitioner             
          has not met his burden, and consequently we must side with                  
          B.  Distributions From Individual Retirement Accounts                       
               Generally, a distribution from an IRA is includable in the             
          distributee’s gross income in the year of distribution under the            
          provisions of section 72.  Secs. 61(a)(11), 408(d)(1), 4974(c);             
          Arnold v. Commissioner, 111 T.C. 250, 253 (1998).  Distributions            
          made prior to a taxpayer’s attaining the age of 59 that are                
          includable in income are generally subject to a 10-percent                  
          additional early withdrawal tax unless an exception to the tax              
          applies.5  Sec. 72(t)(1).  In this case, no exception is                    
          available to petitioner.                                                    
               1.  Disability Exception                                               
               Section 72(t)(2)(A)(iii) exempts distributions “attributable           
          to the * * * [distributee’s] being disabled”.  At trial,                    
          petitioner argued that he was disabled, and he testified that he            
          suffers from “temporal lobe spiking” resulting from a head injury           
          sustained during military service in 1965.  He testified that the           

               5  The sec. 72(t) additional tax is intended to discourage             
          premature distributions from retirement plans.  Dwyer v.                    
          Commissioner, 106 T.C. 337, 340 (1996); see also S. Rept. 93-383,           
          at 134 (1973), 1974-3 C.B. (Supp.) 80, 213.                                 

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