Early Withdrawal Penalty Archives

Additional Tax

Salter v. Commissioner
T.C. Memo. 2022-29

On April 5, 2022, the Tax Court issued a Memorandum Opinion in the case of Salter v. Commissioner (T.C. Memo. 2022-29). The primary issues presented in Salter v. Commissioner were (i) whether the Code section providing exception from imposition of additional tax resulting from early distribution from retirement plan applied; and (ii) whether the taxpayer was entitled to itemized deductions when he failed to file a return, and the IRS filed a substitute for return

Scott St. Amand November 23, 2022

Early Withdrawal Penalty

Catania v. Commissioner
T.C. Memo. 2021-33

On March 15, 2021, the Tax Court issued a Memorandum Opinion in the case of Catania v. Commissioner (T.C. Memo. 2021-33). The primary issue presented in Catania v. Commissioner was whether the early withdrawal penalty of IRC § 72(t) applied to petitioner, an early retiree, on the basis that he was an early retiree. Quick Background to Catania v. Commissioner The petitioner retired from Home Depot when he was 55. He took distributions from his

Scott St. Amand March 15, 2021

Accuracy Related Penalty

Harriss v. Commissioner
T.C. Memo. 2021-31

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

Scott St. Amand March 11, 2021

Early Withdrawal Penalty

Grajales v. Commissioner (156 T.C. No. 3)

On January 25, 2021, the Tax Court issued its opinion in Grajales v. Commissioner, 156 T.C. No. 3. The underlying issue presented in Grajales was whether prior written supervisory approval under IRC § 6751(b)(1) was required to assert the 10% IRC § 72(t) “exaction” for early distributions from a qualified retirement plan. Labels are for Cans Abraham Lincoln is credited for saying “How many legs does a dog have if you call his tail a

Scott St. Amand January 25, 2021

Early Withdrawal Penalty

Tillard v. Commissioner
T.C. Memo. 2020-101

On July 8, 2020, the Tax Court issued a Memorandum Opinion in the case of Tillard v. Commissioner (T.C. Memo. 2020-101). The primary issue before the court in Tillard v. Commissioner was whether the distributions from the petitioner’s retirement account were taxable and subject to the 10% additional tax on early distributions from that account pursuant to IRC § 72(t). Background to Tillard v. Commissioner To finance her eldest son’s college tuition, the petitioner made

Scott St. Amand July 8, 2020

Constitutional Due Process Argument

Conard v. Commissioner
154 T.C. No. 6

On March 10, 2020, the Tax Court issued its opinion in Conard v. Commissioner (154 T.C. No. 6). The issue presented in Conard v. Commissioner was whether applying the additional tax imposed by IRC § 72(t)(1) to distributions made to a taxpayer who, at the time of the distributions, was not yet 59-1/2 years old, was not disabled, and was otherwise not eligible for any of the other exceptions described in the IRC § 72(t)(2),

Scott St. Amand March 10, 2020

Accuracy Related Penalty

Gebman v. Commissioner
T.C. Memo. 2020-1

On January 2, 2020, the Tax Court issued a Memorandum Opinion in the case of Gebman v. Commissioner (T.C. Memo. 2020-1). The issue presented in Gebman v. Commissioner was whether the taxpayers had substantiated any of their positions with regard to their deficiencies, penalties, or relief sought, and if not, were their positions frivolous. Penalizing Whack-A-Doodlery, the Tax Court’s Prerogative in Gebman v. Commissioner In this deficiency and penalties case, the Tax Court’s distaste for the

Scott St. Amand January 2, 2020

Salter v. Commissioner
T.C. Memo. 2022-29

Catania v. Commissioner
T.C. Memo. 2021-33

Grajales v. Commissioner (156 T.C. No. 3)

Tillard v. Commissioner
T.C. Memo. 2020-101

Conard v. Commissioner
154 T.C. No. 6

Most popular tagged posts:

Salter v. Commissioner
T.C. Memo. 2022-29

Catania v. Commissioner
T.C. Memo. 2021-33

Grajales v. Commissioner (156 T.C. No. 3)

Tillard v. Commissioner
T.C. Memo. 2020-101

Conard v. Commissioner
154 T.C. No. 6

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