Lee E. Seidel - Page 16

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          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             

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