- 2 -
Respondent determined a deficiency in petitioner’s Federal
income tax of $9,170 for taxable year 1999. In the notice of
deficiency, respondent increased petitioner’s gross income by
$30,030 and reduced by $601 the miscellaneous itemized deductions
taken by petitioner.
The issue for decision is whether petitioner is taxable on
one-half of the net distribution of $60,060 made from his
California Water Service Company 401(k) plan pursuant to a
marital settlement agreement dissolving his marriage to Laura
Seidel (Ms. Seidel). Respondent’s computational adjustment of
$601 to petitioner’s claimed miscellaneous itemized deductions
will be resolved by our holding on the issue.
Some of the facts have been stipulated and are so found.
The stipulation of facts and the attached exhibits thereto are
incorporated herein by this reference. Petitioner resided in
Yuba City, California, on the date the petition was filed in this
case.
Petitioner married Ms. Seidel on October 23, 1993. During
the marriage, petitioner was employed by the California Water
Service Company (CWSC). Petitioner’s employment with CWSC
commenced in 1974 and continued beyond the dissolution of the
marriage. As an employee of CWSC, petitioner was a participant
in a tax-deferred savings plan (CWSC 401(k)) sponsored by CWSC
pursuant to section 401(a) and (k). Petitioner’s participation
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011