William J. Wells - Page 8

                                        - 8 -                                         

          determination, respondent focuses on when the payments at issue             
          were scheduled to terminate.  First, respondent contends that the           
          payments made by petitioner fail to qualify as alimony because              
          the family support payments were not set to terminate upon the              
          death of Ms. Wells, as required by section 71(b)(1)(D).  In                 
          addition, respondent, relying on section 71(c)(2), asserts that             
          the payments were nondeductible child support payments, because             
          the Modified MTA made the “cessation of the payments contingent             
          upon events which are associated with petitioner's children.”               
               Petitioner, on the other hand, argues that the payments at             
          issue were deductible alimony.  Petitioner asserts that his                 
          payments satisfied section 71(b)(1)(D) because, under California            
          law, the obligation for support terminates automatically upon the           
          death of either party or the remarriage of the recipient.                   
          Moreover, petitioner contends that his payments met the                     
          definition of alimony because the Modified MTA failed to fix any            
          amount as child support, as required by section 71(c)(2) and                
          Commissioner v. Lester, 366 U.S. 299 (1961).                                
          Evidentiary Matters                                                         
               As a preliminary matter, we must make rulings on evidentiary           
          matters.  Respondent moved, pursuant to Rule 50, for the Court to           
          “exclude all extrinsic evidence, including, but not limited to,             
          the testimony of petitioner and the testimony of * * * [Mr.                 
          Young] which pertains to the intended character and/or amount of            





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011