The Tax Court, in Fann v. Commissioner, T.C. Summary Opinion 2017-43 (June 28, 2017), considered the following issues:
- whether for 2012 any portion of petitioners’ distribution from an individual retirement account is excepted from the 10% additional tax imposed by section 72(t) for early withdrawal and
- whether petitioners are liable for an accuracy-related penalty under section 6662(a).
The Tax Court held that the distribution was subject to the 10% additional tax but not the accuracy related penalty under Section 6662(a).
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.