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The Court finds it unnecessary to pass upon the requisites
of section 71(b)(1)(C) and (D) because no questions were raised
by the parties as to those provisions. It is the Court's
holding, therefore, that one-half of the $18,500 withdrawn by Ms.
Jaffe from the Vanguard account during 1994 constituted alimony
under section 71(a), and, therefore, such amount is includable in
her gross income for 1994. Correspondingly, that same amount is
deductible by Mr. Jaffe under section 215(a).
The Dividend Income Issue.
The dividend income at issue arises from the aforementioned
Vanguard Account. The dividend income earned by the Vanguard
Account from January 1, 1994, through the close of 1994 totaled
$15,543. The Vanguard Group issued a Form 1099-DIV (Form 1099)
to "Nancy Akbari and Susan Gantman, Escrow Agents, Irv C. Jaffe
and Arlene Jaffe", for 1994, reporting $15,543.37 in ordinary
dividends earned on the Vanguard Account for 1994. The Form 1099
referenced Mr. Jaffe's taxpayer identification number. Neither
Mr. Jaffe nor Ms. Jaffe reported this income on their respective
Federal income tax returns for 1994. Neither petitioner disputes
that the Vanguard Account earned $15,543 in dividend income
during 1994.
Section 61(a) provides that gross income includes "all
income from whatever source derived," unless otherwise provided.
More specifically, section 61(a)(7) provides that dividends are
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