- 2 -
QDRO. Therefore, P is liable for tax on the entire
lump-sum distribution. Held, further, P is liable for
additional tax on the entire lump-sum as a result of
the early distribution from a qualified retirement plan
pursuant to sec. 72(t), I.R.C.
John L. Onesto, for petitioner.
Donald K. Rogers and Matthew J. Fritz, for respondent.
MEMORANDUM OPINION
NIMS, Judge:* Respondent determined a deficiency in the
1991 Federal income tax of petitioner Jerry L. Burton in the
amount of $53,916, stemming from funds received by petitioner in
connection with the closing of his retirement benefits accounts.
A petition was filed on April 24, 1995. An Answer was filed on
June 13, 1995. Respondent thereafter filed an Amendment to
Answer, claiming an increased deficiency of $17,676 based upon
section 72(t).
Unless otherwise indicated, all section references are to
sections of the Internal Revenue Code in effect for the year in
issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
The sole issue for decision is whether the portion of
petitioner's retirement account distribution used to pay off the
mortgage on petitioner's former residence and to pay his ex-wife
*This case was reassigned to Judge Arthur L. Nims, III, by
Order of the Chief Judge.
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