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this end, petitioner submitted “Employment Search Verification”
documentation to the Marshall County Circuit Court.
On August 27, 2002, the Child Support Division issued an
Order/Notice to Withhold Income for Child Support (the Order) on
Edward Jones. The Order stated that petitioner was in arrears on
his child support obligation for a total of $11,572.40. Edward
Jones received the Order on September 9, 2002, and on October 2,
2002, notified petitioner by letter that it had liquidated assets
in his IRA account totaling $11,572.40, and had forwarded this
amount to the State of Indiana Collections Unit. By check dated
October 2, 2002, Edward Jones paid $11,572.40 from petitioner’s
IRA account to the State Central Collection Unit in Indianapolis,
Indiana.
On his 2002 Federal income tax return, petitioner reported
the $11,572.40 distribution from his IRA as income. However,
petitioner did not report an additional tax of 10-percent of the
total distribution for the early withdrawal from the IRA.
Respondent determined in the notice of deficiency that petitioner
is liable for the additional tax on an early distribution from a
qualified retirement plan. Petitioner asserts that he is not
liable for the additional tax on the early distribution because
the Order meets the criteria of a qualified domestic relations
order (QDRO).
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Last modified: May 25, 2011