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would have to conclude that the use of the term "property
settlement" designated that the payments would not be taxable
under section 71, nor deductible under section 215. This would
be a designation by uncertain implication rather than by clear,
explicit, and express direction.
We find that the labeling of the payments as a “property
settlement”, with nothing more, is not a clear, explicit, and
express direction that the payments are not includable in
petitioner's gross income and are not deductible by Mr. Baker. A
reasonable, commonsense reading of the instruments does not
establish that there is a nonalimony designation regarding the
Federal income tax implications of the payments. Therefore,
section 71(b)(1)(B) is satisfied, and the payments are alimony
includable in petitioner's gross income.
Because the payments are includable in petitioner's gross
income as alimony, we need not address the issue of whether the
payments constitute annuity or retirement income.
Respondent contends that petitioner is liable for additions
to tax pursuant to section 6651(a)(1) for 1994 and 1995. Section
6651(a)(1) imposes an addition to tax for the failure to file a
Federal income tax return by its due date, determined with regard
to any extension of time for filing previously granted.
Additions to tax under sections 6651(a)(1) are imposed unless the
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