- 2 - Held: Since J has no liability to make payments after the death of C, the periodic payments to C constitute gross income includable as alimony payments under sec. 71, I.R.C. They are therefore taxable to C. Marjorie A. O’Connell, for petitioners. Jeffrey E. Gold and Ann M. Welhalf, for respondent. MEMORANDUM FINDINGS OF FACT AND OPINION NIMS, Judge: By deficiency notice dated November 10, 2004, respondent determined a deficiency in petitioners’ income tax for 2002 in the amount of $20,475, and a penalty under section 6662(a) and (b)(1) in the amount of $4,095. Unless otherwise indicated, all section references are to sections of the Internal Revenue Code in effect for all relevant times hereunder. Rule references are to Rules contained in the Tax Court Rules of Practice and Procedure. Respondent concedes the aforementioned penalty. Consequently, the only issue remaining for decision is whether the payments totaling $63,000 which petitioner Carol A. Johanson (petitioner or Carol) received in 2002 from her former spouse, John Weiler (John), are taxable as alimony under section 71. Petitioners resided in California when they filed their petition.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011