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Utilities and Homeowners Insurance
Mr. Burkes during 1990, in accord with the temporary support
order, paid $10,846 for residential utilities and $1,000 for
homeowners insurance for 1990. Respondent determined that these
payments constituted alimony to Ms. Burkes for 1990. Ms. Burkes
argues that those amounts constitute child support. On brief,
respondent conceded that Ms. Burkes "is not required to report
homeowners insurance payments and utility payments as income from
alimony."
Accuracy-related Penalty--Section 6662(a)
With respect to each of petitioners' taxable years in issue,
respondent determined that the entire underpayment for each
taxable year was due to "negligence or disregard of rules or
regulations" under section 6662. On brief, respondent conceded
that "the accuracy-related penalty under section 6662(a) for
negligence does not apply to the adjustments made relative to the
issue of whether the attorney fees and automobile payments
constitute alimony or a division of marital property."
Respondent, however, continues to maintain that the
accuracy-related penalty applies "to all other adjustments"
sustained by the Court or agreed pursuant to the parties'
settlement. Petitioners bear the burden of showing that
respondent's determination is in error, i.e., that the remaining
underpayments are not due to negligence or disregard of rules or
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