- 3 - and Mr. Reed, and on June 30, 1994, the court entered an order (“temporary order”) granting petitioner “temporary spousal support.” Petitioner and Mr. Reed entered into a final divorce settlement agreement (“final agreement”) on July 19, 1995, dissolving their marriage. During the taxable year in issue, 1995, petitioner received six payments of $4,000 each pursuant to the temporary order and one payment of $10,000 pursuant to the final agreement. Petitioner reported no alimony income on her Federal income tax return for 1995. The statutory notice of deficiency reflected respondent’s determination that petitioner received unreported alimony income in the amount of $34,000. The notice stated: It is determined that the $34,000.00 you received in 1995 from your former spouse, George R. Reed, under an “Order on Temporary Allowances” qualifies as alimony payments. Accordingly, the $34,000.00 is includable in your gross income. The $34,000 amount was comprised of six payments of $4,000 and one payment of $10,000. Despite the statement in the notice that all of these payments were made pursuant to the temporary order, the parties have stipulated that only the six $4,000 payments were received pursuant to the temporary order, while the $10,000 payment was received pursuant to the final agreement. Under the Internal Revenue Code, amounts paid which are “alimony or separate maintenance payments” must be included inPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011