- 13 -
Petitioner also submitted a Form 1040X, Amended U.S. Individual
Income Tax Return, for taxable year 1999 to respondent’s counsel
as part of the parties’ informal document exchange but did not
file the Form 1040X with the IRS.
OPINION
As a general rule, the determinations of the Commissioner in
a notice of deficiency are presumed correct, and the taxpayer
bears the burden of proving the Commissioner’s determinations in
the notice of deficiency to be in error. Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933).
1. Taxability of 401(k) Distribution Pursuant to a QDRO
As previously stated, because Mr. Seidel took the position
that petitioner should include the full amount of the
distribution in income and petitioner took the position that Mr.
Seidel should include one-half of the distribution in income,
respondent issued notices of deficiency to Mr. Seidel and
petitioner to avoid the possibility of being in a whipsaw
position. Thus, respondent asserted that Mr. Seidel was
responsible for including the unreported income in the amount of
$30,030 on his 1999 tax return, and respondent also asserted that
petitioner was responsible for including in income the amount of
$46,970 representing the difference between $77,000 and the
$30,030 reported on her 1999 tax return.
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011