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characterized and deducted as alimony. R determined the
$240,000 payments H made to W in 1992, 1993, and 1994
were not alimony and therefore not deductible. R further
determined that H's estate (H died in January 1995) is
liable for an accuracy-related penalty under sec.
6662(a), I.R.C., for 1992, 1993, and 1994.
Held: In ascertaining the applicability of subpar.
(B) of sec. 71(b)(1), I.R.C., the divorce or separation
instrument need not mimic the statutory language of the
subparagraph. The agreement reflects the substance of
a nonalimony designation. Consequently, the $20,000
monthly payments H made to W in 1992, 1993, and 1994 are
not deductible as alimony.
Held further: Because H reasonably and in good
faith relied on the advice of an experienced, competent
tax counsel, R's determination imposing the sec. 6662(a),
I.R.C., accuracy-related penalties is not sustained.
Dan A. Sciullo and Daniel S. Duggan, for petitioner.
Michael W. Lloyd, for respondent.
JACOBS, Judge: In the notice of deficiency respondent
determined the following income tax deficiencies and accuracy-
related penalties:
Penalty
Year Deficiency Sec. 6662(a)
1992 $141,645 $27,779
1993 97,891 19,578
1994 57,226 11,445
After resolving a protective adjustment for the year 1992
(involving the deduction of expenses of an S corporation which
passed through to Monte H. Goldman), the parties agree that the
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