- 4 - Discussion The Commissioner’s determinations in the notice of deficiency generally are presumed correct, and the burden of proving an error is on the taxpayer.4 Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). In general, a payor spouse may deduct alimony payments but may not deduct child support payments. See secs. 71(b) and (c), 215(a) and (b). Section 71(c)(3) provides a special rule where the amount of the child support payment is less than the amount specified in the order: “if any payment is less than the amount specified in the instrument, then so much of such payment as does not exceed the sum payable for support shall be considered a payment for such support.” See also Hazam v. Commissioner, T.C. Memo. 2000-71. In the instant case, the March 1999 order required petitioner to pay his former spouse each month $977 for child support, $471 for spousal support, and $25 for child care expenses. The instructions limited the amount that could actually be garnished from petitioner’s military retirement account to approximately $441. However, the instructions also stated that payments for child support are given priority over payments for spousal support where the garnishment is 4Sec. 7491(a) does not apply in the instant case to shift the burden of proof to respondent because petitioner did not raise the issue and also did not comply with the substantiation and record keeping requirements of sec. 7491(a)(2).Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011