Mark J. Vorwald - Page 3

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          payments.  In a subsequent garnishment proceeding, on or about              
          March 18, 1992, Kathleen J. Vorwald was awarded a judgment in the           
          amount of $8,483.25 against Deer Valley.  Pursuant to this                  
          judgment, Deer Valley was ordered to transfer $8,483.25 from the            
          IRA to Kathleen J. Vorwald, which transfer apparently took place            
          during 1992.                                                                
               Petitioner did not become aware that his former spouse                 
          garnished his IRA until he was so notified by respondent during             
          the course of the examination that eventually led to this                   
               In the notice of deficiency, respondent determined that the            
          amount paid to Kathleen J. Vorwald by Deer Valley from the IRA              
          pursuant to the garnishment proceeding constitutes a distribution           
          to petitioner that is includable in his 1992 income.  Respondent            
          further determined that the distribution is subject to the                  
          additional tax imposed by section 72(t).                                    
               We first consider whether under the circumstances present in           
          this case, the transfer of the funds from the IRA to petitioner's           
          former spouse is tantamount to a distribution from the IRA to               
          petitioner.  For the following reasons, we find that it is.                 
               Because the transfer of funds from the IRA to petitioner's             
          former spouse at least partially discharged a legal obligation he           
          owed to her, the transfer to her is the equivalent of receipt by            
          him.  Old Colony Trust Co. v. Commissioner, 279 U.S. 716, 729               

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