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payments failed to satisfy all of the requirements for treatment
as alimony. Other adjustments to income were computational in
nature. Respondent further determined that petitioner was liable
for the accuracy-related penalty for negligence or disregard of
rules or regulations pursuant to section 6662(a).
OPINION
I. Whether Petitioner Is Entitled to an Alimony Deduction
Pursuant to Section 215(a)
Section 215(a) allows as a deduction to the payor an amount
equal to the alimony or separate maintenance payments made during
the payor's taxable year. Whether a payment constitutes alimony
or separate maintenance within the meaning of section 215(a) is
determined by reference to section 71(b).
Section 71(b) provides in pertinent part as follows:
SEC. 71(b). Alimony or Separate Maintenance Payments
Defined.--For purposes of this section--
(1) In general.--The term "alimony or separate
maintenance payment" means any payment in cash if--
** * * * * * *
(D) there is no liability to make any such
payment for any period after the death of the payee
spouse and there is no liability to make any payment
(in cash or property) as a substitute for such
payments after the death of the payee spouse.
Respondent argues that the contested payments in the amount
of $971,684 are not alimony, and are therefore not deductible by
petitioner, as they do not meet the requirements of section
71(b)(1)(D). Petitioner, on the other hand, asserts that the
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