Randolph S. Simpson I - Page 8

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          qualifies under any other exception.  He alone is responsible for           
          the section 72(t) additional tax.  Respondent is sustained on               
          this issue.                                                                 
               The second issue is whether petitioner is entitled to a                
          deduction for the $17,900 paid to his former spouse during 1997             
          as alimony.  Amounts received as alimony or separate maintenance            
          are includable in the recipient’s gross income under sections               
          61(a)(8) and 71(a) and are deductible by the payor under section            
          215(a) in the year paid.  On the other hand, payments                       
          representing a property settlement are neither deductible to the            
          payor nor includable in income by the recipient.  Sec. 1041.  For           
          tax purposes, the term “alimony or separate maintenance payment”            
          is defined in section 71(b)(1) as any payment in cash meeting the           
          following four criteria:                                                    

               (A) such payment is received by (or on behalf of) a spouse             
               under a divorce or separation instrument,                              
               (B) the divorce or separation instrument does not designate            
               such payment as a payment which is not includible in gross             
               income under this section and not allowable as a deduction             
               under section 215,                                                     
               (C) in the case of an individual legally separated from his            
               spouse under a decree of divorce or separate maintenance,              
               the payee spouse and the payor spouse are not members of the           
               same household at the time such payment is made, and                   
               (D) there is no liability to make any such payment for any             
               period after the death of the payee spouse and there is no             
               liability to make any payment (in cash or property) as a               
               substitute for such payments after the death of the payee              

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