Pamela L. Light - Page 4

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          payments.  The payments were to be alimony, included in                     
          petitioner’s gross income and deductible by Mr. Gutzler from his            
          gross income.  Moreover, in the event that petitioner challenged            
          Mr. Gutzler’s rights to deduct any portion of the monthly                   
          payments from his income, she would remain liable to him for the            
          full amount of any increase in his Federal income tax liability.            
          Finally, both parties specifically acknowledged that certain tax            
          consequences might result from the agreement, and that they had             
          been advised to seek independent tax advice regarding these                 
          possible tax consequences.                                                  
               On or about April 15, 2003, petitioner filed Form 1040, U.S.           
          Individual Income Tax Return, for 2002, on which she reported               
          both adjusted gross and taxable income of $2,392.  On August 16,            
          2004, respondent issued a notice of deficiency.  Respondent’s               
          examination increased petitioner’s reported gross income by                 
          $16,800 representing the alimony payments petitioner received               
          from Mr. Gutzler in 2002.  Additionally, respondent disallowed              
          petitioner’s previously claimed earned income tax credit of $178.           
          As a result of these changes, respondent calculated a deficiency            
          of $1,599 for petitioner’s 2002 Federal income tax.                         
               The Commissioner’s determinations are presumed correct, and            
          taxpayers generally bear the burden of proving otherwise.  Welch            
          v. Helvering, 290 U.S. 111, 115 (1933).  Accordingly, petitioner            

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