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Accordingly, we find that Edward's payments to Irene in 1989 and
1990 made pursuant to orders of the circuit court were "alimony
or separate maintenance payments" as defined in section 71(b)(1).
As such, the court-ordered payments are includable in Irene's
taxable income and deductible by Edward.
3. Refund for Edward
This Court has jurisdiction to determine an overpayment
pursuant to section 6512(b)(1) to the extent that the overpayment
was made after the issuance of the statutory notice. Sec.
6512(b)(3)(A). We have found that Edward's separate maintenance
payments to Irene are deductible by him. As a result of conces-
sions made by the parties and Edward's payment of additional
income tax for 1988 subsequent to the issuance of the statutory
notice, Edward made an overpayment of income tax for 1988
attributable to his failure to deduct a mortgage payment of
$1,934, see supra note 2, supra, and is entitled to a refund for
that year.
The parties have stipulated that Edward is entitled to
increase his 1990 Schedule A deductions by $10,137. The period
permitted for filing a claim for refund of Edward's 1990 income
taxes had not expired. Sec. 6511(b)(2). Since we hold that
Edward is entitled to deduct the separate maintenance payments
made in 1990, we find that Edward has overpaid his 1990 income
tax by reason of the additional Schedule A deductions and that he
is entitled to a refund for that year.
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