Steven Rudolph Kaldi - Page 7




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          temporal lobe spiking causes “severe anxiety and panic attacks”             
          and prevented him from working for several years.  As proof of              
          this disability, he offered a copy of his card from the Veterans’           
          Administration showing that he is a “service-connected, disabled            
          veteran receiving medical benefits”.                                        
               While we do not doubt petitioner’s ongoing mental health               
          issues, from the testimony and evidence presented at trial, these           
          issues do not rise to the level of “disability” as contemplated             
          by the Internal Revenue Code for relief from the additional tax             
          imposed by section 72(t).  “Disabled”, as defined in section                
          72(m)(7), means:                                                            
               [being] unable to engage in any substantial gainful                    
               activity by reason of any medically determinable                       
               physical or mental impairment which can be expected                    
               to result in death or to be of long-continued and                      
               indefinite duration.                                                   
          See also sec. 1.72-17A(f)(3), Income Tax Regs.                              
               Petitioner testified at trial that he was better and had               
          previously been able to regain control of his affairs; thus, his            
          disability was clearly not of long-continued duration.  See sec.            
          72(m)(7).  He also testified that he had begun a professional               
          comeback and was “recovering from” his disability.  Accordingly,            
          the Court remains unconvinced that petitioner’s disability                  
          warrants inclusion under the exception to section 72(t).  See               
          sec. 1.72-17A(f)(2) and (4), Income Tax Regs.                               








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