- 10 - conditions, or statements of intent. Therefore, the payment satisfies the definition of lump-sum alimony as provided by the Supreme Court of Georgia. In addition, the divorce decree does not refer to the payment merely as "alimony" as respondent claims, but specifically as "lump sum alimony". As lump-sum alimony, Human's obligation to pay petitioner $750,000 would not have terminated had petitioner died before payment. Therefore, the payment did not satisfy the definition of alimony under section 71 and could not be includable in petitioner's income. Respondent was in possession of this information before the issuance of the notice of deficiency. The only adjustments made to petitioner's 1992 return in the notice of deficiency were an addition of $750,000 to petitioner's income and a penalty under section 6662 of $48,118. The notice of deficiency stated that these adjustments were made "due to a whipsaw issue between * * * [petitioner] and a related party." We have previously recognized the propriety of respondent's assuming inconsistent positions between former spouses regarding payments incident to divorce under certain circumstances. See Jacklin v. Commissioner, 79 T.C. 340, 344 (1982); Warnack v. Commissioner, 71 T.C. 541, 547-548 (1979). Respondent argues that inconsistent positions were required here because Human took the position that his payment to petitioner in 1992 was alimony deductible by him and includable in petitioner's income. WePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011