- 2 - notice of the same date, respondent determined deficiencies of $11,706 and $12,165, and section 6651(a)(1) additions to tax of $2,054 and $1,580, relating to Katherine L. Hazam’s 1992 and 1993 Federal income taxes, respectively. All section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. After concessions, the issues are whether: (1) Certain payments to Ms. Hazam from Mr. Hazam are properly included, pursuant to section 71, in Ms. Hazam’s income, and deducted, pursuant to section 215, by Mr. Hazam as alimony; and (2) Ms. Hazam is liable, pursuant to section 6651(a)(1), for additions to tax for failure to file timely returns. FINDINGS OF FACT When the petitions were filed, Mr. Hazam resided in Mechanicsburg, and Ms. Hazam in Lancaster, Pennsylvania. Petitioners married in 1970. They had three children: Lexi, Layne, and Kacey. Petitioners divorced in 1987, executing a Marital Settlement Agreement (agreement) that requires Mr. Hazam to pay annual alimony of approximately $200,000 and child support of $30,000 to Ms. Hazam, providing “that the fair amount of child support * * * is subject to change based upon a change in circumstances relative to the needs of the children and the earning capacities of the parties.” The agreement states that itPage: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011