TAX COURT OPINION

Case: Ollie Marie Blade
Docket Number: 342-09S
Judge: Dean
Opinion Type: summary
Filed: 06/10/2010
Pages: 4

T .C . Summary Opinion 2010-7 2 UNITED STATES TAX COURT OLLIE MARIE BLADE, Petitioner v . COMMISSIONER OF INTERNAL REVENUE, Responden t Docket No . 342-09S .' Filed June 10, 2010 . Ollie Marie Blade, pro se . Melanie E . Senick , for respondent . DEAN, Special Trial Judge : This case was heard pursuant t o the provisions of section 7463 of the Internal Revenue Code i n effect when the petition was filed . Pursuant to section 7463(b) , the decision to be entered is not reviewable by any other court, and this opinion shall not be treated as precedent for any other case . Unless otherwise indicated, subsequent section references are to the Internal Revenue Code in effect for the year a t SERVED Jun 10 2010 V issue , and Rule references are to the Tax Court Rules of Practice and Procedure . Respondent determined for 2006 a deficiency in petitioner's Federal income tax of $2,048 . Respondent also determined that petitioner had additional unreported Federal withholding taxes of $915 . The credit under section 31 for withholding tax payments , is specifically excluded from the computation of a deficiency . Sec . 6211 (b)(1) . Once a decision is entered the withholding tax will, however , be treated as a credit against petitioner's ultimate tax liability , reducing it dollar - for-dollar . See sec . .31 . The statutory notice includes adjustments for petitioner' s failure to include in income interest of $269, capital gain dividends of $72 , taxable dividends of $114 , and wages of $4,120 and for the 10-percent additional tax on early distributions from qualified retirement plans . After the notice was issued , petitioner submitted to respondent four successive Forms 1040X , Amended U .S . Individual Income Tax Return . Petitioner reported on the Forms 1040X capital gain dividends of $209, tax - exempt interest and tax exempt interest and dividends of $892, wages of $4,120, and .the 10-percent additional tax on early distributions from qualified retirement plans, which she claimed as a credit . 3 - After concessions by petitioner,' the issue remaining for decision is whether the 10-percent additional tax on early distributions from qualified retirement plans is deductible on petitioner's Federal income tax return . As .no fact is in dispute, on whom the burden of proof rests is not relevant in this case . See Rule 142(a) ; Welch v . Helvering ,, 290 U .S . 111, 115 (1933) ; see also sec . 7491(a) . Petitioner argues that the "penalty for early withdrawal"is deductible on . her Federal income tax return . Her stated authority for claiming the deduction is the tax return itself . Petitioner points to line 30 of Form 1040, U .S . Individual Income Tax Return . Line 30 is in the section of the return where subtractions from gross'income are computed to arrive at adjusted gross income . Line 30 allows a-deduction from gross income for "Penalty on early withdrawal of savings" . The line 30 deduction is authorized by section 62, Adjusted Gross Income defined . Section 62(a)(9) provides for a deduction from gross income for amounts forfeited to a bank, savings and loan association, or similar institution as a penalty for premature withdrawal o f 'The Court considers petitioner to have conceded respondent's determinations to the extent not explicitly conceded on the Forms 1040X because she provided neither'argument nor evidence on the issues at trial . See Bradley v . Commissioner , 100 T .C . 367, 370 (1993) ; Sundstrand Corp . & Subs . v . Commissioner , 96 T .C . 226, 344 (1991) ; Rybak v . Commissioner , 91 T .C . 524, 566 n .19 (1988) . funds from a time savings account, certificate of deposit, or similar deposit . The section 72(t) 10-percent additional tax2 on early distributions from qualified retirement plans is not the "penalty for premature withdrawal" described in section 62(a)(9) . Section 72(t) provides in the case of an early withdrawal from a qualified retirement plan for an increase in the taxpayer's income tax by an amount of 10 percent of the portion of the distribution that is includable in the taxpayer's income . The section 72(t) amount is payable to the U .S . Government and not "forfeited" to a bank, savings and loan association, or similar institution as a penalty for premature withdrawal of funds from a time savings account, certificate of deposit, or similar deposit . Petitioner may not deduct the additional tax due under section 72(t) on her Federal income tax return . To reflect the foregoing, Decision will be entere d for respondent . 2Whether or not the sec . 72(t) 10-percent additional tax is a penalty or additional amount for which respondent would have the burden of production under sec . 7491(c), he met that burden by showing petitioner was not 59-1/2 when she received the distribution . See Milner v . Commissioner , T .C . Memo . 2004-ill . n .2 .