-8- 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 imposePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 NextLast modified: November 10, 2007