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deduction of $28,800 for alimony paid during tax year 2000,
determining that the payments were nondeductible child support
and that Mr. Randich was liable for a tax deficiency of $6,683.
Discussion4
In the present circumstance, respondent is caught in a
potential “whipsaw” position. A whipsaw occurs when different
taxpayers treat the same transaction involving the same items
inconsistently, thus creating the possibility that income could
go untaxed or two unrelated parties could deduct the same
expenses on their separate returns. In such circumstances, the
Commissioner is fully entitled to defend against inconsistent
results by determining in notices of deficiency that both parties
to the transaction are liable for the deficiency. Estate of
Dooley v. Commissioner, T.C. Memo. 1992-557; Moore v.
Commissioner, T.C. Memo. 1989-306.
The deductibility of alimony is governed by sections 71 and
215. The Deficit Reduction Act of 1984 (DEFRA), Pub. L. 98-369,
sec. 422, 98 Stat. 795, applicable to divorce instruments
executed after December 31, 1984, amended both sections. The
parties have stipulated that the judgment for dissolution of
marriage was entered by the circuit court on April 12, 2000.
4We decide the issues in this case without regard to the
burden of proof. Accordingly, we need not decide whether the
general rule of sec. 7491(a)(1) is applicable in this case. See
Higbee v. Commissioner, 116 T.C. 438 (2001).
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