Larry Wade Human - Page 5

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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).                                                                                                      
                    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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