Mary K. Heckaman - Page 7




                                        - 7 -                                         

          the statutory law of most States, alimony terminates at the death           
          of the payee spouse unless the separation agreement or the                  
          divorce decree provides to the contrary.  Therefore, in 1986,               
          Congress struck the parenthetical under section 71(b)(1)(D) that            
          provided for alimony treatment only if the divorce or separation            
          instrument stated that there is no liability on behalf of the               
          payor spouse to make the payments after the death of the payee              
          spouse.  See sec. 1843(b) of the Tax Reform Act of 1986, Pub. L.            
          99-514, 100 Stat. 2085, 2853.  But even after the 1986 amendment,           
          if an obligation to make payments survives the death of the payee           
          spouse under either the terms of the divorce decree or State law,           
          then such payments will not be considered alimony.  Thus, the               
          1986 amendment injected State law into the section 71(b) inquiry            
          because, in order to distinguish alimony from property                      
          settlement, it may sometimes become necessary to consider State             
          law to decide whether an obligation to make support payments                
          survives the death of the payee spouse.                                     
               The issue before us is whether the payments petitioner                 
          received pursuant to the provisional order were for her support,            
          thus constituting alimony, or in the nature of a property                   
          settlement and therefore excludable from her gross income.                  



          3(...continued)                                                             
               separation instrument states that there is no such                     
               liability).                                                            





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011