Arnold v. Commissioner
United States Tax Court
In December 1989, following P's retirement, P began receiving annual distributions from his individual retirement account (IRA). At that time, P was 55 years old. The distributions were intended to constitute a series of substantially equal periodic payments within the purview of sec. 72(t)(2)(A)(iv), I.R.C., so as to avoid P's having to pay the 10-percent tax pursuant to sec. 72(t)(1), I.R.C.
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In December 1989, following P's retirement, P began receiving annual distributions from his individual retirement account (IRA). At that time, P was 55 years old. The distributions were intended to constitute a series of substantially equal periodic payments within the purview of sec. 72(t)(2)(A)(iv), I.R.C., so as to avoid P's having to pay the 10-percent tax pursuant to sec. 72(t)(1), I.R.C. In November 1993, after five distributions of $ 44,000 each had been made, and when P attained age 59-1/2, P received $ 6,776 from his IRA. In the notice of deficiency, R determined that the November…
1Opinion of the Court
Jacobs, Judge:
Respondent determined a $21,221 deficiency in petitioners’ Federal income tax for 1993. The deficiency arises due to the imposition of the 10-percent recapture tax under section 72(t)(4), which was triggered by a November 1993 distribution to Robert C. Arnold (hereinafter petitioner) from his individual retirement account. The sole issue for decision is whether the November 1993 distribution impermissibly modified a series of substantially equal periodic payments.
All section references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are…
2Cases cited2 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Dwyer v. CommissionerUnited States Tax Court · 1996
3Cited by42 opinions
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- Bernard v. Comm'rUnited States Tax Court · 2012
- Murray v. Comm'rUnited States Tax Court · 2012
- Arnold v. CommissionerUnited States Tax Court · 1998
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