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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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Last modified: May 25, 2011