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increased. Prior to 1995, Mr. Newell was issued an annual Form
1099-R, Distributions From Pensions, Annuities, Retirement or
Profit-Sharing Plans, IRAs, Insurance Contracts, etc., reflecting
the entire amount of the benefits received by both Mr. Newell and
petitioner. From 1995 forward, however, petitioner annually has
been issued a separate Form 1099-R reflecting the portion of the
benefits paid directly to her.
During 1999, petitioner received $2,450 in spousal support
payments from Mr. Newell. In addition, she received $12,204 in
the form of twelve payments of $1,017 from the Defense Finance
and Accounting Service. On petitioner’s 1999 Federal income tax
return, she reported $2,450 in alimony income. Although she
reported pension distributions of $12,204, she reported that no
portion of this amount was taxable. In the statutory notice of
deficiency, respondent determined that the pension distributions
totaling $12,204 were includable in petitioner’s gross income.
We first address briefly an argument by respondent that
certain provisions of the Internal Revenue Code relating to
section 401(a) qualified plans are applicable to the case at
hand.1 Although both parties discuss the qualified plan
1Specifically, respondent’s argument implies that the
military retirement plan is a governmental plan under sec.
414(d), that petitioner received the payments in issue pursuant
to a sec. 414(p) qualified domestic relations order, and that
petitioner is therefore a sec. 402(a) distributee pursuant to
(continued...)
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