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section 7491(a)(1) is applicable in this case. See Higbee v.
Commissioner, 116 T.C. 438 (2001).
A “domestic relations order” is defined in pertinent part as
any judgment which relates to the provision of marital property
rights to a spouse, or former spouse, of a participant and is
made pursuant to a State domestic relations law. Sec.
414(p)(1)(B). A QDRO is a specific type of domestic relations
order which in pertinent part (1) creates an alternate payee’s
right to receive all or part of the benefits payable with respect
to a participant under a plan, (2) clearly specifies certain
facts, and (3) does not alter the amount of the benefits under
the plan. Sec. 414(p)(1)(A), (2), and (3).
Section 72(t) provides for an additional tax of 10 percent
on any amount received as an early distribution from a qualified
retirement plan. A “qualified retirement plan” includes an IRA.
See sec. 4974(c)(4). The section 72(t) additional tax does not
apply in certain situations, and the sole exception on which
petitioner relies is section 72(t)(2)(C). That section provides
that distributions from qualified retirement plans are not
subject to the additional tax if they are made to an alternate
payee pursuant to a QDRO within the meaning of section 414(p)(1).
Section 414(p)(8) defines the term “alternate payee” as any
spouse, former spouse, child or other dependent of a participant
who is recognized by a domestic relations order as having a right
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