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section 6651(a) addition to tax and section 6662(a) accuracy-
related penalties determined in the notices of deficiency.
OPINION
The sole issue to be resolved concerns the characterization
(alimony or property settlement) of the payments made by
petitioner's former husband for the purpose of providing petitioner
with an automobile in 1991 and 1994. Petitioner asserts that these
payments are not alimony and her use of an automobile was provided
for pursuant to a property agreement. On the other hand,
respondent contends that the payments constituted alimony to
petitioner because they were: (1) Made "periodically" (i.e., every
3 years) under a written separation agreement, (2) constructively
received by petitioner, and (3) made to support and maintain
petitioner.
Succinctly stated, alimony or separate maintenance payments
are generally taxable to the recipient and deductible by the payor,
whereas transfer of property between spouses (property settlements)
incident to a divorce are generally not taxable events and do not
give rise to recognizable income or to a deduction. Secs.
61(a)(8), 712, 215(a).
2 The Deficit Reduction Act of 1984, Pub. L. 98-369, sec.
422, 98 Stat. 494, 795, extensively changed the alimony rules
effective for divorce decrees executed after Dec. 31, 1984. We
note that this case involves sec. 71(a)(1) prior to its revision.
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