Barbara Ann McMahon - Page 4




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          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 in              






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