- 15 -
required Ms. Seidel’s attorney to pay out of the fund so
distributed, within 30 days of its receipt by him, two
liabilities owed jointly by Ms. Seidel and petitioner to First
Community Financial Services, and to pay to petitioner $10,000.
In fact, Ms. Seidel’s attorney made these payments, and Ms.
Seidel never actually received the proceeds that went to fulfill
these obligations.
Based on the particular facts of this case, we find that
under the present QDRO, which by its terms incorporated the
Stipulation and Order filed August 3, 1999, Ms. Seidel was
alternate payee of only a portion of the distribution; i.e.,
$51,497. See Seidel v. Commissioner, T.C. Memo. 2005-67. The
remainder of $25,503 is attributable to petitioner as beneficiary
and distributee, and it consists of $15,503, which is one-half of
the two joint liabilities paid off by the proceeds of the CWSC
401(k) distribution, plus the $10,000 check given to petitioner
from the proceeds of the CWSC 401(k) distribution, in compliance
with the Stipulation and Order.
Therefore, we hold that petitioner is liable for the tax on
the indirect distribution which he received in the amount of
$25,503. We note that petitioner’s distribution from his CWSC
401(k) plan is not one-half of the total community property
interest in such plan. We assume such division was a result of
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