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ex-husband, which sums constitute gross income that petitioner
did not report on her income tax returns. The notice states that
the total tax shown on petitioner’s 1995 Federal income tax
return (the 1995 return) is $13,431 and that petitioner made
total payments of $7,161.
By the petition, petitioner assigns error to respondent’s
determination of deficiencies, additions to tax, and a penalty.
Among the averments made by petitioner is that the payments were
transfers of property incident to divorce pursuant to section
1041.
Discussion
I. Deficiencies in Tax
A. Introduction
Petitioner was divorced from ex-husband on January 3, 1980.
Incorporated into the final judgment was the agreement by which
ex-husband agreed to pay to petitioner “her community property
interest in his military retirement pension upon receipt
thereof”. The payments were made pursuant to the agreement. We
must determine whether the payments constitute items of gross
income to petitioner.
B. Pension Payments
In pertinent part, section 61(a) provides: “gross income
means all income from whatever source derived, including (but not
limited to) the following items: * * * (11) Pensions”.
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