Gregory Eugene Thompson - Page 8




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          percent of the amount includable in gross income for the year.              
          Id.                                                                         
               Petitioner also argues that PSRS’s 20-percent withholding on           
          the early distribution accounts for the 10-percent additional tax           
          under section 72(q) and the 10-percent additional tax under                 
          section 72(t) and asserts that no law authorizes this                       
          withholding.  Respondent did not determine, nor do we find, that            
          petitioner is liable under section 72(q).  See supra note 3.                
          Withholding of 20 percent generally is required on any eligible             
          rollover distribution, such as the distribution to petitioner,              
          unless the employee elects a direct rollover.  Secs.                        
          402(f)(2)(A), (c)(4), 3405(c).  The amount withheld as tax may be           
          credited toward the tax liability, however.  Sec. 31(a).  In                
          fact, respondent adjusted the tax respondent determined that                
          petitioner owed in the deficiency notice by crediting the amount            
          withheld on the distribution against the amount respondent                  
          determined petitioner owed on the premature distribution.                   
               We therefore sustain respondent’s determination that                   
          petitioner is liable for the 10-percent additional tax on the               
          early distribution.                                                         
          III. Accuracy-Related Penalty                                               
               We next consider whether petitioner is liable for the                  
          accuracy-related penalty under section 6662(a).  Respondent has             
          the burden of production under section 7491(c) and must come                
          forward with sufficient evidence that is it appropriate to impose           







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