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alimony deduction of $41,000. Ms. Bader filed a 2002 Form 1040,
U.S. Individual Income Tax Return, prepared by a certified public
accountant, on which she failed to report any alimony income.
Discussion
Mr. Ray and Ms. Bader bear the burden of proving that
respondent’s determinations in the respective notices are
erroneous. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115
(1933).2
I. Parties’ Arguments
In the role of a stakeholder, respondent issued separate
statutory notices of deficiency to Mr. Ray and Ms. Bader,
addressing their inconsistent treatment of the payments.
Respondent disallowed Mr. Ray’s alimony deduction of $41,000 based
on the determination that Mr. Ray failed to substantiate that he
actually paid $41,000 or that such amount was alimony. Respondent
determined that Ms. Bader received alimony of $41,000 in 2002 and
adjusted her income accordingly.
Mr. Ray alleges that the claimed deduction of $41,000
represented the sum of all the payments made by him in 2002. He
now agrees that any payments made prior to the March 13
2With respect to any factual issue relevant to ascertaining
the liability of the taxpayer, sec. 7491(a) shifts the burden of
proof to the Commissioner in certain situations. The resolution
of the factual issue in this case does not depend upon which
party has the burden of proof. Rather, the factual issue is
decided upon the basis of the stipulated facts and the documents
contained in the record. Therefore, sec. 7491(a) does not apply.
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