- 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