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expressly waives his right to spousal support
from Plaintiff.
In 1985, Mr. Goldman made the required payments (totaling
$5,055,000) pursuant to paragraph 2.2.2.
Pursuant to paragraph 2.2.9 of the agreement, Mr. Goldman paid
Ms. Parker $20,000 per month during each of the years in issue
(totaling $240,000 each year). On his 1992, 1993, and 1994 Federal
income tax returns, he characterized these $240,000 payments as
alimony and took corresponding deductions. Ms. Parker did not
report these payments as alimony on her 1992-94 returns.
Mr. Goldman received an opinion letter, dated December 28,
1990, from the law firm of Kornfeld & Franklin of Oklahoma City,
Oklahoma, with regard to the deductibility of the $240,000 payments
on his returns. This letter advised Mr. Goldman that, pursuant to
the agreement, he was entitled to deduct these payments as alimony.
In the notice of deficiency, respondent determined that the
$240,000 payments Mr. Goldman made to Ms. Parker in 1992, 1993, and
1994 are not alimony and thus not deductible. Respondent further
determined that petitioner is liable for the section 6662(a)
accuracy-related penalty for each of the years in issue.
OPINION
Issue 1. Deductibility of Payments Mr. Goldman Characterized as
Alimony
The fundamental issue involved herein concerns the
characterization of the $20,000 monthly payments Mr. Goldman made
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