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respectively. Respondent also determined accuracy-related
penalties under section 6662(a) for taxable years 1993 and 1994.1
At trial, respondent conceded that petitioner is not liable
for penalties under section 6662(a). The sole issue remaining
for decision is whether payments totaling $28,800 in each of the
years at issue made by petitioner’s ex-husband to petitioner are
alimony or nontaxable child support.
Some of the facts have been stipulated and are so found.
The stipulation of facts and the attached exhibits are
incorporated herein by reference. Petitioner resided in Atlanta,
Georgia, at the time her petition was filed.
Background
Petitioner was married to James H. Shepherd, Jr. (Mr.
Shepherd) from 1977 until she obtained a divorce on April 18,
1989. Two children were born of the marriage: James H. Shepherd
III, born on December 23, 1979, and Julie H. Shepherd, born on
September 5, 1981. Petitioner filed for divorce on January 27,
1988. A temporary order was entered by agreement of the parties
on May 11, 1988, providing for payment to petitioner of temporary
alimony of $3,000 per month.
Petitioner and Mr. Shepherd thereafter engaged in settlement
negotiations through their attorneys to arrive at an agreement
regarding the equitable division of their marital property,
1 Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for the years in issue.
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