Larry Wade Human - Page 1

                                 T.C. Memo. 1998-106                                  

                               UNITED STATES TAX COURT                                

                           LARRY WADE HUMAN, Petitioner v.                            
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 25675-96.                   Filed March 16, 1998.           

                    In 1992, P deducted payments in the amount of                     
               $971,684 made to or on behalf of his former spouse                     
               pursuant to a final judgment and decree of divorce as                  
               alimony under sec. 215(a), I.R.C.  R disallowed the                    
               alimony deduction completely, determining that the                     
               payments failed to satisfy all the requirements for                    
               treatment as alimony.  R further determined that P was                 
               liable for the accuracy-related penalty for negligence                 
               or disregard of rules or regulations pursuant to sec.                  
               6662(a), I.R.C.                                                        
               1.  Held:  The obligation to make the lump-sum payments                
               at issue would survive the death of P's former spouse                  
               under State law, and therefore such payments are not                   
               deductible to P as alimony.  Secs. 71(b), 215(a),                      
               2.  Held, further, P is not liable for the accuracy-                   
               related penalty for negligence pursuant to sec.                        

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