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THE [State] COURT: All right. So you’re in
agreement with the stipulation as recited by Mr. Hemann
[Ms. Tiley’s counsel]?
MR. WHEELER [petitioner’s counsel]: Is that
correct, Doctor?
DR. FREDERICK TILEY: Yes.
THE COURT: I was going to ask you, Dr. Tiley.
For the record you are in agreement with it as well?
DR. FREDERICK TILEY: Yes.
On October 7, 1998, and November 25, 1998, petitioner wrote
checks to Ms. Tiley in the amounts of $23,004 and $57,000,
respectively.
On their 1998 Form 1040, U.S. Individual Income Tax Return,
petitioners deducted $38,500 as alimony paid to Ms. Tiley.
OPINION
In the petition in this case, petitioner alleged that
$38,500 of the $80,000 in payments made to Ms. Tiley in 1998 was
for “deductible spousal support.” Petitioner did not concede the
deficiency until the time of trial, although his claim was
clearly contrary to the settlement agreement that he entered into
in 1998. Petitioner, however, contends that he should not be
liable for the accuracy-related penalty because he did not
remember the settlement agreement entered into the record of the
State court. He asserts that, at the time of the settlement,
approximately $38,000 was owed to Ms. Tiley as spousal support.
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Last modified: May 25, 2011