Katherine A. Weir - Page 5




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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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Last modified: May 25, 2011