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Section 71(b)(1), as amended, now defines "alimony or separate
maintenance payment" as:
any payment in cash if--
(A) such payment is received by (or on behalf of)
a spouse under a divorce or separation instrument,
(B) the divorce or separation instrument does not
designate such payment as a payment which is not
includible in gross income under this section and not
allowable as a deduction under section 215,
(C) in the case of an individual legally separated
from his spouse under a decree of divorce or of
separate maintenance, the payee spouse and the payor
spouse are not members of the same household at the
time such payment is made, and
(D) there is no liability to make any such payment
for any period after the death of the payee spouse and
there is no liability to make any payment (in cash or
property) as a substitute for such payments after the
death of the payee spouse.
In this case, there is no dispute that the payments at issue
satisfy subparagraphs (B) and (C) of section 71(b)(1). The
disputed issues are whether the payments at issue satisfy the
requirements of subparagraphs (A) and (D) of that section.
Qualification under subparagraph (A) centers on the question
of whether the payments at issue were "received by (or on behalf
of)" Betty. Petitioner insists that all the disputed payments
were made on Betty’s behalf. Respondent concedes that petitioner
made some of these payments on behalf of Betty, but he counters
that the bulk of the payments redounded to petitioner’s benefit,
and not to Betty’s.
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Last modified: May 25, 2011