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Respondent determined a deficiency in petitioner's 1992
Federal income tax in the amount of $2,119.30, and an addition to
tax pursuant to section 6651(a) in the amount of $529.83.
The issues for decision are: (1) Whether petitioner must
include in income as a distribution from his individual
retirement account the amount transferred therefrom to his former
spouse in a garnishment proceeding; and, if so, (2) whether the
distribution is subject to the additional tax imposed by section
72(t). During the trial respondent's counsel conceded the
addition to tax and advised the Court that the deficiency
determined in the notice was overstated inasmuch as it failed to
take into account the allowance of the standard deduction.
Background
Some of the facts have been stipulated, and they are so
found. Petitioner filed his 1992 Federal income tax return on
June 15, 1995. He was single as of the close of 1992 and resided
in Buellton, California, at the time that the petition was filed.
In 1986, petitioner opened an individual retirement account
(IRA) at the Deer Valley Federal Credit Union in Phoenix, Arizona
(Deer Valley). The history of petitioner's contributions to the
IRA is unknown. As of March 18, 1992, there was at least
$8,483.25 in the account.
On or about September 4, 1991, a judgment in the amount of
$10,670.24 was entered against petitioner in favor of his former
spouse, Kathleen J. Vorwald, for arrearages in child support
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