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“there is no liability to make any such payment * * * (in cash or
property) as a substitute for such payments after the death of
the payee spouse.” The applicable regulations, specifically
section 1.71-1T(b), Q&A-14, Temporary Income Tax Regs., supra,4
state:
To the extent that one or more payments are to begin to
be made, increase in amount, or become accelerated in
time as a result of the death of the payee spouse, such
payments may be treated as a substitute for the
continuation of payments terminating on the death
of the payee spouse which would otherwise qualify as
alimony or separate maintenance payments. * * *
The legislative history states:
the bill provides that a payment qualifies as alimony
only if the payor * * * has no liability to make any
such payment for any period following the death of the
payee spouse. A provision for a substitute payment,
such as an additional amount to be paid as child
support after the death of the payee spouse will
prevent a corresponding amount of the payment to the
payee spouse from qualifying as alimony. * * *
[H. Rept. 98-432, supra at 1496.]
We conclude that all of the post death payments described in
the decrees are substitute payments for purposes of section
71(b)(1)(D) and turn to decide the tax consequences that result
from this characterization. Pursuant to section 1.71-1T(b), Q&A-
13, Temporary Income Tax Regs., supra, the fact that a payor
spouse is required to make substitute payments means that none of
4 While these temporary regulations were superseded in part
by the technical correction provisions of the Tax Reform Act of
1986, Pub. L. 99-514, sec. 1843(b), 100 Stat. 2853, the portions
of these temporary regulations that we rely upon herein were not
affected by those provisions and continue to be effective.
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