- 8 -
petitioner from Mr. Burns satisfy the requirements of alimony set
out in section 71(b)(1)(A), (B), and (C). Therefore, the
payments' status as alimony depends upon whether they satisfy
section 71(b)(1)(D); i.e., whether Mr. Burns's liability to make
the payments would have terminated in the event of petitioner's
death.
Petitioner argues that the $16,800 received from Mr. Burns
in 2002 was not taxable alimony but was part of the property
settlement she and Mr. Burns agreed to regarding the marital
home. Petitioner argues that the MSA, as drafted by the
attorney, did not conform to the terms to which she and Mr. Burns
agreed. Specifically, petitioner avers that she and Mr. Burns
agreed that the $1,400 monthly payments she received from Mr.
Burns until the marital home was sold were to be taxable to Mr.
Burns.
The gravamen of respondent's argument is that the payments
made to petitioner pursuant to the MSA were alimony because all
the requirements of section 71(b)(1)(A)-(D) are satisfied. Even
if Mr. Burns's $1,400 monthly payments to petitioner were
intended as part of a property settlement and were to be taxable
to Mr. Burns, respondent argues, they are alimony for Federal
income tax purposes as long as the requirements of section
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011