Sandra J. Wolf - Page 4

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          employment, approximately 9 years from this date.”  The divorce             
          decree is silent as to whether the payments are to terminate upon           
          petitioner’s death.                                                         
               In 2002, petitioner received payments from Wolf totaling               
          $9,600.  Wolf deducted the payments as alimony on his 2002 income           
          tax return.  Petitioner did not include the $9,600 as alimony               
          income on her 2002 return.                                                  
               The parties dispute whether the payments received by                   
          petitioner from Wolf are taxable to her under section 71.                   
          Resolution of this dispute depends on whether the payments, as a            
          matter of law, terminate on the death of petitioner.                        
               Section 71(a) provides that gross income generally includes            
          amounts received as alimony or separate maintenance payments.               
          Section 71(b)(1) defines “alimony or separate maintenance                   
          payment” as any payment in cash if--                                        
                    (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 of                        
               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                 

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