- 5 - manner presently being paid by the Navy and the parties agree that this arrangement shall continue without protest by the parties regarding the method used by the Navy to compute the amount paid to the plaintiff, subject to the 15% limitation for disability portion of the Navy retirement. From August 1983 through the date of trial (January 8, 2001), petitioner received a portion of Mr. Mozley’s military retirement pay from the Navy Finance Center in Cleveland, Ohio. During the years in issue, petitioner received a total of $14,588 for 1995 and $13,880 for 1996, as her share of Mr. Mozley’s military retirement pay. Petitioner’s Returns Petitioner reported her share of Mr. Mozley’s military retirement pay as income on her Federal income tax returns for 1983 through 1990; she did not do so for 1991 through 1999. Notice of Deficiency In the notice of deficiency, respondent determined that the military retirement payments petitioner received in 1995 and 1996 constituted taxable alimony to her. OPINION We first decide whether the military retirement payments petitioner received during the years in issue constituted taxable alimony, as respondent contends, or a nontaxable division of property, as petitioner maintains. Gross income includes amounts received as alimony or separatePage: Previous 1 2 3 4 5 6 7 8 9 10 Next
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