Joyce A. Perkins - Page 3




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          Hamilton County, Tennessee, and incorporated into that court’s              
          final divorce decree.  The first few pages of the MDA are                   
          dedicated to the division of marital property.  Under the heading           
          “Alimony”, paragraph 14(a) of the MDA provided that Dr. Perkins             
          would pay to petitioner, until May 9, 2004, when she would reach            
          the age of 59-1/2, alimony in futuro in an amount equal to 20               
          percent of Dr. Perkins’s earned income.  Paragraph 14(b) of the             
          MDA stated that Dr. Perkins’s obligation to pay alimony in futuro           
          would cease upon the death of petitioner, upon petitioner’s                 
          remarriage, or at Dr. Perkins’s death should it occur before May            
          9, 2004.  Under paragraph 14(f), the MDA provided that if Dr.               
          Perkins was to become disabled and receive benefits from his                
          professional disability policy, petitioner was to receive 20                
          percent of the policy benefits until Dr. Perkins’s alimony                  
          obligation terminated on May 9, 2004.                                       
               At some point prior to January 1, 2003, Dr. Perkins became             
          disabled and started receiving payments under his professional              
          disability policy.  During 2003, Dr. Perkins paid to petitioner             
          $26,400 of his policy benefits for that year.2                              
               Petitioner filed, in a timely manner, a Form 1040, U.S.                
          Individual Income Tax Return, for the 2003 taxable year, on which           
          she failed to report any of the $26,400 paid to her by Dr.                  



               2  That amount was paid to petitioner in 12 monthly                    
          installments of $2,200.                                                     





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Last modified: March 27, 2008