- 10 -
opinion does not address whether the liability to make such
payments terminates at the death of the payee spouse; however,
under Illinois law, Edward's obligation to continue the payments
will terminate at Irene's death.6 Illinois Marriage and Dissolu-
tion of Marriage Act, sec. 510(c). Edward and Irene were not
members of the same household at the time the payments were made.
Edward and Irene did not file a joint return for the taxable
years 1989 and 1990.
Edward and Irene disagree with respect to whether the
circuit court opinion meets the requirements of section
71(b)(1)(B). The opinion of the circuit court makes no mention
of section 71 or section 215 and does not expressly designate the
payments as being nontaxable to Irene or as nondeductible by
Edward.
Irene, nonetheless, contends that the circuit court
implicitly intended the payments to be nontaxable to Irene.
Irene asserts that the circuit court intended that she receive
approximately 40 percent of Edward's net income and that, if the
payments were to be taxable to her, her share after taxes would
only be 36.2 percent of Edward's net income. Irene also contends
that, because the circuit court did not deduct the court-ordered
payments from Edward's gross income when determining Edward's net
6Such State law provision satisfies the termination on death
requirement of sec. 71(b)(1)(D). Notice 87-9, 1987-1 C.B. 421.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011