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not, whether Mr. Kean meets the net worth requirements, and
whether the litigation costs Mr. Kean seeks are reasonable. Mr.
Kean resided in Far Hills, New Jersey, when he filed his
petition.
Background
The underlying claim that gave rise to the present dispute
involved whether any part of the unallocated support payments
(disputed payments) paid by Mr. Kean to petitioner Patricia P.
Kean (Ms. Kean) constitutes alimony under section 71 that is
deductible by Mr. Kean, under section 215, and includable in the
gross income of Ms. Kean, under sections 61(a)(8) and 71(a). In
the notices of deficiency, and in the answers filed by
respondent, respondent took inconsistent positions, disallowing
the deductions to Mr. Kean and requiring Ms. Kean to report
alimony income. On brief, however, respondent argued that Mr.
Kean should be allowed to deduct the disputed payments and Ms.
Kean should report the disputed payments as income.
This Court rendered Kean v. Commissioner, T.C. Memo. 2003-
163, deciding that the disputed payments were alimony for Federal
income tax purposes.
Discussion
Section 7430 provides for the award of litigation costs to a
taxpayer in a court proceeding brought against the United States
involving the determination of any tax, interest, or penalty
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