PURSUANT TO INTERNAL REVENUE CODE
SECTION 7463(b),THIS OPINION MAY NOT
BE TREATED AS PRECEDENT FOR ANY
1 Unless otherwise indicated, all subsequent section
references are to the Internal Revenue Code in effect for 2001,
the taxable year in issue. All monetary amounts are rounded.
T.C. Summary Opinion 2006-55
UNITED STATES TAX COURT
LINDA L. DOMANICO AND ANTHONY M. DOMANICO, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 18992-04S. Filed April 19, 2006.
Linda L. Domanico and Anthony M. Domanico, pro sese.
Joan Casali, for respondent.
ARMEN, Special Trial Judge: This case was heard pursuant to
the provisions of section 7463 of the Internal Revenue Code in
effect when the petition was filed.1 The decision to be entered
is not reviewable by any other court, and this opinion should not
be cited as authority.
- 2 -
2 On or about Dec. 11, 2003, petitioners paid to respondent
$931 in respect of the $4,046 deficiency representing the 10-
percent additional tax under sec. 72(t) on $8,560 of petitioner
Linda L. Domanico’s 401(k) plan distribution, which portion
petitioners conceded was not used for higher education expenses,
plus interest thereon. However, as discussed infra in the text,
the distribution of $40,457 less her education expenses of
$32,147 equals $8,310. This discrepancy is not explained in the
Respondent determined a deficiency in petitioners’ Federal
income tax for the taxable year 2001 of $4,046. The deficiency
is attributable solely to the 10-percent additional tax under
section 72(t) on an early distribution from a qualified
After petitioners’ partial concession concerning the amount
of the deficiency in dispute,2 the sole issue for decision is
whether petitioners are liable under section 72(t) for the 10-
percent additional tax on an early distribution from petitioner
Linda L. Domanico’s section 401(k) qualified retirement plan
(401(k) plan). We