- 12 - in computing disposable retired pay. 10 U.S.C. sec. 1408(a)(4)(C) (1988 & Supp. III 1991); NDAA sec. 555(b)(3), (e)(2). This amendment, however, is effective only for divorces entered into on or after February 3, 1991, which date is after both petitioner’s final judgment and the QDRO and is therefore not applicable in the instant case. 10 U.S.C. sec. 1408(a)(4)(C) (1988 & Supp. III 1991); NDAA sec. 555(b)(3), (e)(2). Based on the law as it was in effect on the date of petitioner’s final judgment and the date of the QDRO, petitioner’s interest is calculated on Mr. Walton’s military retired pay less income taxes withheld. As explained earlier, petitioner’s interest is taxable. Accordingly, we conclude that the $4,958 received in 2000 by petitioner for her interest in Mr. Walton’s military retired pay is includable in petitioners’ gross income. However unfair the outcome in this case may seem to petitioners, the gap in the USFSPA that this case highlights is not one that can be closed by judicial fiat, and a remedy, if any, must originate with Congress. We have considered all of petitioners’ arguments, and, to the extent that we have not specifically addressed them, we conclude them to be without merit. Reviewed and adopted as the report of the Small Tax Case Division.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011