Case: Tax Court’s Ruling on Taxable Retirement Distribution, Additional Tax for Early Withdrawal Proper

The U.S. Court of Appeals for the 9th Circuit affirmed the Tax Court’s decision upholding the Commissioner’s deficiency determination for tax year 2017. Taxpayer, an individual, received a retirement distribution that was determined to be taxable income. Taxpayer appealed the Tax Court’s decision upholding the Commissioner’s determination. The U.S. Court of Appeals held that the retirement distribution was taxable income under IRC §61. The court also found that IRC §402(a) provides that distributions from qualified employee trusts are taxable to the distributee in the year of distribution. Additionally, the court noted that IRC §72(t) imposes a 10-percent additional tax on ...