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Respondent determined a deficiency in petitioners’ Federal
income tax for 2003 of $2,400 on the basis of the disallowance of
an alimony deduction for payments made to petitioner husband’s
ex-wife. The sole question presented in this case is whether
those payments met the definition of “alimony” under the Internal
Revenue Code. As we are required to hold that the payments at
issue were not alimony, we must sustain respondent’s
determination.
Background
Some of the facts have been stipulated, and they are so
found. We incorporate by reference the parties’ stipulation of
facts and accompanying exhibits.
At the time the petition was filed, Michele K. Garner and
Roger Allen Garner, Jr. (Mr. Garner), jointly referred to herein
as petitioners, resided in Colorado. They moved there from
Georgia in 2004.
Mr. Garner and Lisa B. Garner (ex-wife) were married in
Georgia in December 1983. They were divorced there in November
2002. The section of the marital Settlement Agreement labeled
“ALIMONY” provides that Mr. Garner will pay his ex-wife “$800 per
month as alimony” for 10 years. That section of the Settlement
Agreement goes on to use the phrase “lump sum alimony” without
further explanation or qualification. The Settlement Agreement
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