Jay Andrew Reindl - Page 3




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               Respondent determined a $3,720 additional tax under section            
          72(t)(1) relating to petitioner’s Federal income tax for 2004.              
               Unless otherwise indicated, all section references are to              
          the Internal Revenue Code in effect for 2004.                               
               The sole issue for decision is whether under section 72(t)             
          petitioner owes a 10-percent additional tax on an early                     
          distribution from his individual retirement account (IRA).                  

                                     Background                                       
               Some of the facts have been stipulated and are so found.               
               At the time the petition was filed, petitioner resided in              
          North Carolina.                                                             
               Before 1998, petitioner worked and contributed to an IRA.              
               During 1998 through 2004, petitioner was employed at various           
          temporary jobs and borrowed money from family members to pay                
          personal expenses.                                                          
               In 2004, petitioner received as his only source of taxable             
          income a $37,200 early distribution from his IRA.  At the time of           
          the distribution, petitioner had not attained age 59-1/2, and               
          Federal income taxes of $7,440 were withheld from the                       
          distribution to petitioner.                                                 
               On his timely filed 2004 individual Federal income tax                 
          return, petitioner reported the entire $37,200 IRA distribution             
          as taxable income, and he reported a $4,056 Federal income tax              








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