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condemnation action brought by DeKalb County involving the
marital residence of petitioner and Anita.)
Petitioner timely filed a Form 1040, U.S. Individual Income
Tax Return, for taxable year 1992. On line 29, "Alimony paid",
of his return, petitioner claimed a deduction of $971,684, which
amount represents the sum of $913,957.60 paid to Anita, as well
as attorney's fees of $57,726.80 paid on her behalf. (The amount
of $971,684 deducted by petitioner on his return appears to have
been rounded to the nearest dollar.)
Petitioner's accountant for 16 years, Clark Tomlin (Tomlin),
prepared and signed petitioner's 1992 return. Petitioner
discussed the deductibility of the payments to Anita with Tomlin
"several times" before the return was prepared. Petitioner
stated that "after 16 years, if * * * [Tomlin] didn't think he
was correct, * * * [Tomlin] wouldn't have signed * * * [the
return]". Petitioner also spoke with an attorney and former
employee of the IRS, Bill Indictor (Indictor), "a bunch of times"
about this issue in 1992. Tomlin talked with Indictor as well.
Petitioner presented to Tomlin "everything" related to the
alimony issue, including the Judgment, in order for Tomlin to
accurately prepare petitioner's 1992 return.
On August 30, 1996, respondent issued a notice of deficiency
to petitioner for taxable year 1992. Respondent disallowed
petitioner's alimony deduction in its entirety. In Workpaper
Comments attached to the notice, respondent stated that the
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