Martha Jane McNeely - Page 5

                                        - 4 -                                         
          courts may not determine issues of Federal tax law.  Commissioner           
          v. Tower, 327 U.S. 280, 288 (1946); Lucas v. Earl, 281 U.S. 111             
          (1930); Sampson v. Commissioner, 81 T.C. 614, 618 (1983), affd.             
          without published opinion 829 F.2d 39 (6th Cir. 1987).                      
          Petitioner is free, however, to pursue her remedy, if any, in               
          State court against her former spouse for enforcement of any                
          agreement by her former spouse to pay the tax on the income at              
          issue in this case or recover the amount she is required to pay             
          by this Court.  The Court, accordingly, sustains respondent on              
          this issue.3                                                                
               Reviewed and adopted as the report of the Small Tax Case               
          Division.                                                                   


                                        Decision will be entered for                  
                                   petitioner as to the deficiency, and               
          petitioner is not entitled to any                                           
          refund for an overpayment of tax.                                           


               3One of the exhibits stipulated into evidence is a letter              
          dated Nov. 1, 2005, from the IRS addressed to petitioner with               
          respect to the CalPERS income in which it is pointed out to                 
          petitioner that respondent’s actions are based on the Form 1099             
          issued by CalPERS.  It is suggested to petitioner that, if her              
          former spouse is liable for the income tax on the payments to her           
          by CalPERS by virtue of the community property settlement between           
          petitioner and her former spouse, petitioner should contact                 
          CalPERS to have that matter resolved so that CalPERS would                  
          thereafter issue the Form 1099 to petitioner’s former spouse.  At           
          trial, petitioner did not address whether she followed that                 
          advice.                                                                     





Page:  Previous  1  2  3  4  5  

Last modified: May 25, 2011