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We now turn to petitioner’s claim that she is entitled to an
additional $79,688 deduction, or some part thereof, for fees paid
to attorneys, accountants, and appraisers. The parties herein
make no argument as to the placement of the burden of proof nor
as to how section 7491(a) applies, if at all, to a new issue.
In general, attorney’s fees and other expenses relating to a
divorce represent personal expenses and are nondeductible to
either spouse. See United States v. Gilmore, 372 U.S. 39, 49
(1963). A deduction under section 212, however, may be allowed
for expenses incurred for the production or collection of income,
such as expenses relating to the right to receive interest
income.
The evidence in support of the $79,688 paid to attorneys,
accountants, and appraisers does not indicate the date the fees
were actually paid by petitioner. From the invoices provided by
petitioner, it appears that most of the bills were paid by
petitioner before the years in dispute. Furthermore, the
invoices that do relate to 1994 and 1996 fail to differentiate
between amounts paid in connection with petitioner’s divorce and
amounts paid, if any, to obtain the receipt of interest income.
For 1994 and 1996, no part of the claimed $79,688 is
deductible by petitioner.
Section 6662(a) imposes a penalty of 20 percent on the
portion of an underpayment of tax attributable to negligence or
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