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entirely different: Lump sum alimony which is not, despite what
petitioners may have been assured, deductible from petitioners’
income as alimony. Thus, we hold that the $9,600 paid to Mr.
Garner’s ex-wife in 2003 pursuant to the Settlement Agreement
does not qualify to be deducted as alimony paid by petitioners
under section 215. Sec. 71(b)(1)(D); see Mukherjee v.
Commissioner, T.C. Memo. 2004-98.
Petitioners have asked us to reform the Settlement Agreement
to more properly reflect the Federal tax intentions of the
parties, particularly given the circumstances under which the
Settlement Agreement was entered into. As a court of limited
jurisdiction, we are unable to do so. See, e.g., Commissioner v.
McCoy, 484 U.S. 3, 7 (1987); Hays Corp. v. Commissioner, 40 T.C.
436, 442-443 (1963), affd. 331 F.2d 422 (7th Cir. 1964); see also
Woods v. Commissioner, 92 T.C. 776, 784-787 (1989); Hopkinson v.
Commissioner, supra. We do note, however, that the Georgia State
courts may have jurisdiction over changes to the Settlement
Agreement and would be the proper forum for such disputes.
In sum, we found petitioners to be very straightforward and
honest, as well as well prepared for trial. Unfortunately, the
Internal Revenue Code is very specific in its requirements, and
Mr. Garner’s payments to his ex-wife in 2003 did not meet the
requirement outlined in section 71(b)(1)(D) by virtue of Georgia
State law. Accordingly, we must hold that, in the instant case,
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