Mary C. Theurer - Page 5




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          treated as alimony and is to be included in petitioner’s 1999               
          income.                                                                     
               We agree with respondent.  The $240,000 petitioner received            
          in 1999 from her husband under the July 7, 1998, court order                
          constituted alimony and is includable in petitioner’s 1999                  
          taxable income.                                                             
               The January 12, 2000, minute order of the superior court               
          does not retroactively change the character of the $240,000                 
          petitioner received in 1999.  See Graham v. Commissioner, 79 T.C.           
          415, 420 (1982); Gordon v. Commissioner, 70 T.C. 525, 530 (1978);           
          Ali v. Commissioner, T.C. Memo. 2004-284.                                   
               Alternatively, petitioner argues that because the $240,000             
          she received from her husband in 1999 also was reported on her              
          2000 Federal tax return, she should not be taxed on the $240,000            
          again in 1999.  To the contrary, as a cash basis taxpayer,                  
          petitioner for 1999 must report and pay taxes on the alimony she            
          received in 1999.  See sec. 451(a).  Petitioner should have filed           
          an amended 2000 Federal income tax return to correct the                    
          overreporting for 2000 of alimony she received in 2000.                     
               For the reasons stated, the $240,000 petitioner received               
          from her husband in 1999 is to be treated as alimony and is                 
          includable in petitioner’s 1999 income.                                     
               Because respondent has sustained his burden of production as           
          to the section 6662(a) accuracy-related penalty and the section             







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