Penalty
Year Deficiency Sec. 66621
1990 $6,300 $1,260
1991 8,668 1,734
The issues for decision are whether petitioners are entitled
to deductions for alimony pursuant to sections 71 and 215 in the
amounts of $30,000 in 1990 and $10,000 in 1991,2 and whether
petitioners are liable for the accuracy-related penalty under
section 6662(a).
FINDINGS OF FACT
Some of the facts have been stipulated and are found
accordingly.
At the time of the filing of the petition in this case,
petitioners had a legal residence in Encino, California.
Petitioners filed joint Federal income tax returns for the
taxable years 1990 and 1991.
On June 19, 1987, Mr. Raymond Rosenthal (petitioner) and his
ex-wife, Ruth Rosenthal, executed a marital settlement agreement
in connection with the dissolution of their marriage (the
settlement agreement). Section 8 of the settlement agreement
provided in part as follows:
Husband shall pay to Wife, as and for spousal
support, commencing May 1, 1987, and continuing on the
1 All section references are to the Internal Revenue Code in effect for
the years in issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure, unless otherwise indicated.
2 Petitioners concede that $25,000 of the $35,000 claimed as an alimony
deduction for 1991 is not alimony, but is a payment in connection with a
property settlement.
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Last modified: May 25, 2011