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of the section 71(c)(2) exception. That is so because California
law does not provide for segregation of unallocated or
undifferentiated child and spousal support payments. In other
words, the total amounts meet the requirement of section
71(b)(1)(D). Therefore, Mr. Ambrose is entitled to a deduction
for all the family support payments for his 1990 and 1991 tax
years, and a like amount is includable in Ms. Ambrose's income
for those years.11
Accuracy-Related Penalty Under Section 6662(a)
Respondent also determined that Mr. Ambrose was liable for
the accuracy-related penalty pursuant to section 6662(a).
Section 6662(a) imposes a penalty equal to 20 percent of the
portion of the underpayment that is attributable to negligence or
disregard of rules or regulations. Sec. 6662(a) and (b)(1). The
burden is on the taxpayer to show a lack of negligence. Rule
142(a); Bixby v. Commissioner, 58 T.C. 757, 791-792 (1972).
This issue has been rendered moot for Mr. Ambrose in light
of our holding in his favor on the first issue.
11 In light of our holding, we do not reach an argument by
Ms. Ambrose that the proposed segregation of family support
payments should be made retroactive to March 1989.
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