- 4 - 17, 1985, the Family Court issued an "ORDER MODIFYING ORDER MADE BY ANOTHER COURT (Support)", and an attached "FINDINGS OF FACT". The findings of fact provided, in pertinent part, that: 4. There is one child [Renea] aged 7 for whose support [James] is liable * * * . * * * * * * * 10. The monthly needs of the child are: $408.28 The Order directed James to "pay $100 per week for support, effective 12-17-85, and payments are to be made direct to [Virginia]". On their 1990 Federal income tax return, petitioners deducted $5,200 as "alimony paid". This sum represented the $100.00 a week James was ordered to pay to Virginia. Respondent disallowed petitioners' $5,200 alimony deduction. Respondent's position is that based upon the language of the Judgment of Divorce and the subsequent order that modified the Judgment, the payments made constitute nondeductible child support payments. Respondent further contends that petitioners have only substantiated $1,425 in payments to Virginia. Petitioners argue that the payments are deductible as alimony. James testified that it was his understanding at the time of his divorce that his ex-wife "was to pay the tax" on the money he paid to her. Petitioners further argue that James was divorced on December 11, 1984, and, therefore, the pre-Tax Reform Act of 1984 rules apply. Petitioners contend that the termPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011