114 T.C. No. 17 UNITED STATES TAX COURT MICHAEL G. BUNNEY, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 20713-97. Filed April 10, 2000. Petitioner (H) and his former wife (W) were divorced in 1992. H and W were residents of California, a community property State. The judgment dissolving the marriage ordered that H’s IRA’s, which were funded with contributions that were community property, be divided equally between H and W. In 1993, H withdrew $125,000 from his IRA’s and transferred $111,600 to W. Held: sec. 408(g), I.R.C., precludes characterization of W as a 50-percent “distributee” of H’s IRA’s under sec. 408(d)(1), I.R.C.; accordingly, H, not W, is taxable on the distributions. Held, further, no portion of the $111,600 paid to W is excludable from H’s income under sec. 408(d)(6), I.R.C. Held, further, H is liable for the sec. 72(t), I.R.C., additional tax on the IRA distributions. Held, further, petitioner had a reasonable basis for his position, and thus the accuracy-related penalty for negligence under sec. 6662(a), I.R.C., applies only with respect to the adjustments conceded by H.Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011