Dwyer v. Commissioner
United States Tax Court
P husband, age 53 at the time, made a premature withdrawal from his individual retirement account (IRA) in 1989. P was actively engaged as a stock trader specializing in trading corporate stock on a short-term basis throughout 1989. During the latter part of the year he was diagnosed as suffering from clinical depression. Held: Ps are liable for the 10-percent additional tax on the premature IRA withdrawal. Sec. 72(t), I.R.C.
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P husband, age 53 at the time, made a premature withdrawal from his individual retirement account (IRA) in 1989. P was actively engaged as a stock trader specializing in trading corporate stock on a short-term basis throughout 1989. During the latter part of the year he was diagnosed as suffering from clinical depression. Held: Ps are liable for the 10-percent additional tax on the premature IRA withdrawal. Sec. 72(t), I.R.C. Although Ps claimed the exception for disability contained in sec. 72(t)(2)(A)(iii), I.R.C., P husband was not "disabled" within the definition of that term contained in…
1Opinion of the Court
Nims, Judge:
For the year 1989, respondent determined the following deficiency in petitioners’ Federal income tax and penalties:
Addition to tax Penalty
Deficiency sec. 6651(a)(1) sec. 6662(a)
$79,092 $19,773 $15,818
Unless otherwise stated, all section references are to the Internal Revenue Code in effect for the year 1989, and all Rule references are to the Tax Court Rules of Practice and Procedure.
After concessions, the only issue remaining for decision is whether petitioners are liable under section 72(t) for the 10-percent additional tax on an early distribution from a qualified retirement…
2Cases cited1 opinion
- Dreicer v. CommissionerUnited States Tax Court · 1982
3Cited by45 opinions
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