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Petitioner resided in Walnut Grove, Georgia, at the time the
petition was filed.
The issues are whether petitioner is entitled to deduct
$25,000 paid to his former wife's attorneys and whether he is
liable for the accuracy-related penalty under section 6662(a).
This case was submitted fully stipulated. The facts may be
summarized as follows. Petitioner and Connie Page Smith (herein
wife or former wife) were married in 1968 and divorced in 1993.
The settlement agreement that was incorporated by reference in
the final decree of divorce provided for a division of real
property and tangible and intangible personal property. The
agreement further provided:
14.
The Husband shall make payments of alimony to the Wife
as follows:
(a) The Husband shall pay $2,000.00 per month for a
period of one year from the date of the signing of this
Agreement;
(b) After the expiration date of (a) above, the Husband
shall pay $1,500.00 per month for a period of two (2) years;
(c) After the expiration date of (b) above, the Husband
shall pay $1,000.00 per month for a period of three (3)
years.
These alimony payments above stated shall continue each
and every month until the expiration date stated above or
until the Wife dies or remarries, or the Husband dies,
whichever event occurs first. * * * The payments are
intended to qualify as income to the Wife and deductible to
the Husband for tax purposes, pursuant to section 71 and
section 215 of the Internal Revenue Code of 1986 as amended.
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