Patricia D. Arias - Page 4

                                        - 3 -                                         
          Clearinghouse records reflect no payments.  Each check to                   
          petitioner, however, bore a notation that it was for spousal                
          maintenance and child support.                                              
               Petitioner failed to report any amount as income from                  
          alimony or separate maintenance on her Federal tax return for               
          2002.                                                                       
                                      Discussion                                      
               As the issue for decision in this case is a question of                
          law, section 7491(a) does not apply.  Petitioner argues that                
          under Arizona State law $30,000 of the payments that she received           
          from Arias constitutes a “gift” to her and is not taxable.                  
          Respondent contends that the $30,000 paid by Arias constitutes              
          income to petitioner as alimony or separate maintenance.                    
               For purposes of Federal income tax, under section 71(a),               
          “Gross income includes amounts received as alimony or separate              
          maintenance payments.”  Section 71(b)(1) defines the term                   
          “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              





Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011