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“is subject to modification only by a subsequent legal writing
signed by both parties.”
After the divorce, all three children lived with Ms. Hazam
until the end of 1991, when Layne moved in with his father.
During 1992 and 1993, when Lexi was away at college, Mr. Hazam
reduced his payments, which he sent to Ms. Hazam with handwritten
notes characterizing portions of the payments as alimony and
child support. Mr. Hazam wrote in a 1995 letter to Ms. Hazam
that he had reduced his child support payments because revenue
from his business had declined and Layne and Lexi no longer
resided with Ms. Hazam.
On each of his 1992 and 1993 tax returns, Mr. Hazam deducted
as alimony approximately $200,000, the amount that he had paid
each year to Ms. Hazam. On her returns for those same years, Ms.
Hazam reported approximately $170,000 per year as alimony income,
excluding approximately $30,000 as child support.
Pursuant to extensions, Ms. Hazam’s tax returns were due
October 15, 1993 and 1994. Respondent’s records show that the
returns were filed on October 20, 1993, and October 25, 1994.
OPINION
I. Alimony and Child Support
Section 71(a) provides that gross income includes amounts
received as alimony. Section 71(c)(1) provides that alimony
shall not include child support. Section 71(c)(3) provides that
“if any payment is less than the amount specified in the [divorce
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Last modified: May 25, 2011