TAX COURT OPINION

Case: James Anthony Schnitzer
Docket Number: 24240-06S
Judge: Colvin
Opinion Type: bench
Filed: 07/16/2008
Pages: 5

UN ITED STATES TAX COURT KU h/t WASHINGTON, DC 2021 7 JAME S ANTHONY SCHNITZER, Petitione r v . ) Docket No . 24240-06S . COMMIS SIONER OF INTERNAL REVENUE , Respondent O R D E R Proce ~ ursuant to Rule 152(b), Tax Court Rules of Practice and ure, it is to pet tram Robes of fa D t at the Clerk of the Court shall transmit herewi itioner and to respondent a copy of the pages of the ript of the proceedings in the above case before Judg e P . Ruwe at Cleveland, Ohio, containing his oral findings t and opinion rendered on June 18, 2008 . I decisi n accordance with the oral findings of fact and opinion, on will be entered for respondent . (Signed ) Robert P. Ruwe Judg e Aprt . R c0RDZD L . CA - J 1JDGE Dated : Washington, D .C . July 16, 2008 SERVED JUL 17 2008 ench Opinion by Senior Judge Robert P . Ruwe June 18, 200 8 James Anthony Schnitzer 24240-06 S 3 The Court has decided to render Oral Findings of Fact and opinion in this case and the following represent s he Court's Oral Findings of Fact and Opinion . These Oral Findings of Fact and Opinion shall not be relied upon as recedent in any other case . This proceeding was heard as a small tax case pursuant to the provisions of Section 7463 of the Internal rRevenue Code, as amended , and Rules 170 through 175 of the ax Court Rules of Practice and Procedure . This Bench Opinion is made pursuant to the authority granted by Section 7459(b) of the Internal Revenue ode of 1986, as amended , and Rule 152 of the Tax Cour t Rules of Practice and Procedure . James Schnitzer appeared on his behalf . espondent determined a deficiency in Petitioner 's income ax for th year 2004 in the amount of $1,565, based on NPIZ t ection 72 (1) which imposes a 10t additional tax on premature distributions from qualified retirement plans . The only issue is whether Petitioner is liable for the 10% additional tax . Some of the facts have been Stipulated and are so found . Heritage Reporting Corporation (202) 628-4888 4 5 7 8 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 25 4 1 3 1 0 1 1 1 2 1 3 1 4 Petitioner timely filed his federal income tax return for 2004 . On that return he reported $15,645 .99 on line lib as the taxable amount from retirement account distribution . Attached to the return is a copy of a Form 1099R entitled Distributions from Pensions , Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, et cetera . It was issued by Fidelity Investments to Petitioner showing the taxable distribution of $15,645 .99 . Petitioner did not report the Section 41 Wk additional tax on his 2004 return . During the first quarter of 1989 Petitioner became a participant in the B .F . Goodrich employee stock purchase and savings plan . In 1989, after Petitioner became a 1 5 participant in the B .F . Goodrich employee stock purchase and 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 savings plan, the B .F . Goodrich employee stock purchase and savings plan became a retirement plus savings plan . In 1990, Petitioner ceased contributions to the B .F . Goodrich retirement plus savings plan . In 1993, Petitioner separated from service with B .F . Goodrich . In 2004, Petitioner withdrew his distribution and received a 2004 Form 1099 from Fidelity Investments . Petitioner claims that he contributed money to an employer 24 matched stock fund but the stock fund became a retirement 25 plan and that he never wanted to be in a retirement plan . Heritage Reporting Corporation (202) 628-4888 5 Nevertheless ,' it is clear that the distribution that Petitioner received in 2004 was from a retirement plan . Petitioner does not allege that he was over age 59 and a half in 2004 so as to make the 10% additional tax inapplicable . And he has made no claim or offered any evidence that he comes within any of the other exceptions t o 1 2 3 4 5 6 the 10% tax that are provided in Section 7 2 RP~e RK Based on this, we hold that Petitioner is liable 9 for the 10% additional tax as provided in Section 72 10 Decision will be entered for Respondent and thi s 11 concludes the Court's Oral Findings of Fact and Opinion . 1 2 13 14 1/ 15 / 16 / 17 / 18 / 19 / 20 / 21 / 22 / 23 / 24 / 25 / Heritage Reporting Corporation (202) 628-4888 1 1 THE COURT : All right , call the next case . 2 (Whereupon , at 10 : 28 a .m ., the bench opinion in 3 he above -entitled matter was concluded . ) 6 4 / 5 / 6 / 7 / 8 / 9 / 10 / 11 / 12 / 13 / 14 / 15 1/ 1 / 16 1 7 18 19 / 20 / 21 / 22 / 23 / 24 / 25 / Heritage Reporting Corporation (202) 628-4888