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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.
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Last modified: May 25, 2011