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derived”. Pensions are listed among the forms of income within
the definition of section 61(a). Sec. 61(a)(11). Under section
402(a), a pension distribution is normally taxed to the
distributee.6 Pursuant to section 402(e)(1)(A), the spouse or
former spouse is treated as the distributee with respect to
distributions allocated to that spouse pursuant to a QDRO, and
such distributions therefore become taxable income to that
spouse. In this situation, the spouse receiving the distribution
pursuant to the QDRO is also known as an “alternate payee”.
Secs. 402(e)(1)(A), 414(p)(8).
In 2002, petitioner received the $168,355.71 pension
distribution as an alternate payee under the QDRO. As a
consequence, he was required to include the full amount of that
distribution in his 2002 income. Although the Court is
sympathetic to petitioner’s claimed financial hardship, his
argument that he has spent the money primarily for eleemosynary
purposes and may now be unable to pay his tax liability is
irrelevant to the existence of the tax liability.
To the extent that petitioner asserts entitlement to
charitable contribution deductions for asserted expenditures
related to his foundation, the Court concludes that he has not
carried the burden of proving entitlement to any such deductions.
6 As a technical matter, sec. 402(a) provides that the
distribution is taxable under sec. 72.
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Last modified: November 10, 2007