On March 11, 2021, the Tax Court issued a Memorandum Opinion in the case of Harriss v. Commissioner (T.C. Memo. 2021-31). The primary issues presented in Harriss v. Commissioner were whether the notices of deficiency issued to the petitioners were valid and whether the petitioner is liable under IRC § 72(t) for the early withdrawal penalty. Shenanigans in Harriss v. Commissioner The petitioner was paid, on average, $150,000 in 2012, 2013, and 2014.  Forms 1099 were issued.  Taxes were withheld. In 2013, the petitioner withdrew $37,000 from his retirement plan.  Nonetheless, the petitioner filed (untimely) his returns claiming ZERO income (wages) and claiming a refund for the entirety of the withheld taxes.  Accompanying said returns were “corrected” Forms W-2 and 1099, accompanying was a statement which read the following: My activities in 2012 involved entirely private arrangements and did not involve the exercise of any federal privilege or the receipt…