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for decision is whether petitioner is liable for the section
72(t) 10-percent additional tax relating to an early distribution
from a qualified retirement plan.
Background
In 2003, petitioner, who was less than 59-1/2 years of age,
received a $9,776 distribution from a qualified retirement plan.
Petitioner reported the distribution on his 2003 Federal income
tax return. On January 23, 2006, respondent sent petitioner a
notice of deficiency relating to 2003. In the notice, respondent
determined that petitioner was liable for the section 72(t) 10-
percent additional tax because petitioner received an early
distribution from a qualified retirement plan. On April 18,
2006, petitioner, while residing in Joliet, Illinois, filed his
petition with the Court and contested the 10-percent additional
tax.
Discussion
Section 72(t)(1) imposes a 10-percent additional tax on an
early distribution from a qualified retirement plan. Petitioner
contends that he is not liable for the additional tax because of
financial hardship. Section 72(t)(2) lists several exceptions to
the additional tax, but there is no exception relating to
financial hardship. Arnold v. Commissioner, 111 T.C. 250, 255
(1998). Accordingly, respondent’s determination is sustained.
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Last modified: November 10, 2007