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On April 15, 2001, Mr. Randich timely filed his Federal
income tax return for taxable year 2000. On his return, Mr.
Randich claimed a deduction of $28,800 as alimony paid during tax
year 2000 to his former spouse, Ms. Randich, pursuant to the
judgment for dissolution of marriage in petitioners’ divorce.
Following the examination by the Internal Revenue Service
(IRS) of Ms. Randich’s and Mr. Randich’s 2000 Federal income tax
returns, Ms. Randich took the position that the payments made by
her former spouse, Mr. Randich, to her are nondeductible child
support for the taxable year 2000 and are not includable in her
income pursuant to section 71(c)(2). Mr. Randich, however, took
the position that the payments made to his former spouse, Ms.
Randich, constitute alimony paid during taxable year 2000, which
he is entitled to deduct pursuant to section 215 and which is
taxable to Ms. Randich pursuant to section 71.
As a result, respondent issued notices of deficiency to both
Ms. Randich and Mr. Randich to avoid the possibility of being in
a whipsaw position. On December 4, 2002, respondent issued Ms.
Randich a notice of deficiency for taxable year 2000. In the
notice of deficiency, respondent determined Ms. Randich had
unreported alimony income of $28,800 and was liable for a
deficiency of $6,091. On October 15, 2003, respondent issued Mr.
Randich a notice of deficiency for taxable year 2000. In the
notice of deficiency, respondent disallowed Mr. Randich’s claimed
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