- 5 - 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”.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011