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arbitration were voluntary and did not constitute alimony for
Federal income tax purposes. Subsequent to March 13, 2002, Mr.
Ray wrote to Ms. Bader a total of 10 checks, totaling $23,000 of
which he states that he intended $20,000 to be alimony and the
remainder to be child support. Of the $20,000, Mr. Ray
substantiated that $16,000 was alimony. Ms. Bader agrees that she
received alimony of $16,000 in 2002 and has paid Federal income
tax on that amount.
II. Issues Raised
At issue in this case is whether the remaining $4,000
constitutes alimony within the meaning of section 71(b)(1) that is
deductible by Mr. Ray under section 215(a) and that is includable
in the income of Ms. Bader under section 71(a).
The $4,000 at issue is represented by three checks: (1)
$2,000 is attributable to check No. 1095, dated March 22, 2002,
(2) $1,000 is attributable to check No. 1129, dated May 5, 2002,
and (3) $1,000 is attributable to check No. 1148, dated May 20,
2002.
Check No. 1095 was a check for $3,000. Of that amount, Mr.
Ray claims that he intended $2,000 to be his initial alimony
payment (Initial Payment) and the remainder to be child support.
Mr. Ray testified that he made the Initial Payment prior to the
prescribed date of April 1, 2002, because he assumed that the
divorce was final after the March 13 arbitration. He also assumed
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