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liability thereon. Petitioner, however, did not report a section
72(t) 10-percent additional tax on his early IRA distribution.
On audit, respondent determined that the section 72(t)
10-percent additional tax applied to petitioner’s taxable
$37,200 IRA distribution.
Discussion
Generally, a distribution to a taxpayer from an IRA before
the taxpayer attains age 59-1/2 is subject to a 10-percent
additional tax on the taxable amount of the distribution.
Sec. 72(t)(1). There are only narrow statutory exceptions to
this rule. See, e.g., Duronio v. Commissioner, T.C. Memo. 2007-
90 (exception under section 72(t)(2)(E) for early distribution to
pay qualified higher education expenses).
Petitioner does not argue that any recognized exception to
the general rule under section 72(t)(1) is applicable herein.
Petitioner, however, argues that his financial hardship should
except him from the 10-percent additional tax under section
72(t)(1).
While we sympathize with petitioner’s financial hardship, no
statutory or case authority provides an exception from imposition
of the additional tax under section 72(t) for financial
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Last modified: March 27, 2008