T. C. Su m m ary Opi ni on20 13 -5 5 UNITED STAT ES TAX COURT

CARL RAISI G, Peti ti on er v . COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 14 69 8- 11 S. File d J ul y 11 , 20 13
. Carl Rai si g, p ro se. Mar is saJ. Sav it , forres po nd en t.

SUMM ARY OPINION CARLUZZO, Spec ia l Tri al Ju dg e: The p et it io n i n thi s ca se was fi le d pu rs ua ntto th e p ro vi si on s o f se ct io n 7 46 3 o f th e In te rn al Rev enue Co de ineffe ct whe n the pe ti ti on was fi le d. Pur su an t t o s ect io n 7 46 3( b) , th e d eci si on to be 1
Unl es s o th erwi se in di cat ed , sec ti on refe ren ces are t o the Int ern al Rev enue 1 (co nt in ue d...)- 2 -

en te redis no t re vi ewab le by any othe r co urt, an d thi s o pi ni on sh al l n otbe tre at ed
as pre ced en t fo r an y

othe r cas e. Ina no ti ce o f de fic ie nc y

date d M ay

31 , 20 11 (no ti ce), re sp on de nt de te rm in eda de fic ie nc y

inpe ti ti on er’s 2 00 8 F ed eral in co m e ta x a ndim po se d a
se ct io n 6 65 1( a)(1 ) ad di ti on to tax an d asec ti on 66 62 (a) a ccu racy-rela te d p en al ty. The cas e is be fo re the Co urt o n re sp on de nt ’s m ot io n fo r su m m ary jud gm en t. The is su es forde ci si on are: (1) whet he r pe ti ti on er i s en ti tl edto anali m on y de du ct io n in ex ces s o f th e am ou ntres po nd en t al lo wed ; (2 ) whe th er p et it io ne r is li ab le fora se ct io n 6 65 1( a)(1 ) ad di ti on to tax ; an d (3 ) whe th er p et it io ne r is li ab le fora se ct io n 66 62 (a) a ccu racy-rela te d p en al ty. Su m m ary jud gm en t i s i nt en de d t o e xp ed it e li ti ga ti on an d a vo idun ne ces sa ry an d e xp en si ve tri al s. See Fla . Peach Co rp . v. Co m m is si on er, 9 0 T.C. 6 78 , 68 1 (1 98 8) . Summ ary jud gm en t m ay be gra nt edwith re sp ectto all or a ny partof t he le ga l i ss ue s i n c on tro ve rs y “ if t he pl ead in gs , ans wers to in te rro ga to rie s, de po si ti on s, ad m is si on s, an d a ny oth er ac cep tabl e m at eri al s, t og ethe r with the affi da vi ts or d ecl arat io ns , if an y , sh ow tha t the re i s n o g enui ne di sp ut e as to an y m at eri al factan d tha t a d eci si on m ay be ren de redas am at te r of law.” R ul e 1 21 (b ); (...co nt inue d) 1 Co de of 1 98 6, as am en de d, i n e ffec t fo r th e y ear a t i ss ue . Rul e ref eren ces are t o th e Tax Co urt Ru le s o f Prac ti ce an d P ro cedur e.- 3 -

Sund st ran d C or

p. v . Comm is si on er, 9 8 T.C. 5 18 , 52 0 (1 99 2) , aff’d, 1 7 F .3d96 5 (7 th Cir . 19 94 ); Zae nt z v . Comm is si on er, 9 0 T.C. 7 53 , 75 4 (1 98 8) ; Naf te l v
. Co m m is si on er, 8 5 T.C. 5 27 , 52 9 (1 98 5) . The m ov in g p arty be ars th e b ur de n o f pr ov in g tha t the re i s n o g enui ne is su e o f m at eri al fact , andfactua l i nf eren ces wil l be readina m an ne r m os t fa vo rab le to th e p arty op po si ng su m

m ary jud gm en t. See Dah ls tro m

v. Co m m is si on er, 8 5 T.C. 8 12 , 82 1 (1 98 5) ; J ack li n v . Comm is si on er, 79 T.C. 34 0, 3 44 (19 82 ). The re ar e o bv io us di sp ut es ov er m at eri al fact s wi th res pe ctto pe ti ti on er’s li ab il ity for th e se ct io n 6 65 1( a)(1 ) ad di ti on to tax an d the sec ti on66 62 (a)
accu racy-rela te d p en al ty im po se d i n the no ti ce. So m uc h o f res po nd en t’s m ot io n as rel at es to th es e it em s wi ll be de ni ed . Becau se th ere are n o fa ctua l d is pu te s wi th
res pe ctto pe ti ti on er’s en ti tl em en t t o the ali m on y de du ct io n h ere i n d is pu te , andfor th e rea so ns di sc us se d b el ow, re sp on de ntis en ti tl edto de ci si onon th atis su e as a m at te r of law, an d re sp on de nt ’s m ot io n wi th res pe ctto th atis su e wil l b e g ran te d. Pet it io ne r res id edinNew Yorkat t he ti m e th e p et it io n was fil ed
. Und is pu te d F actua l Ba ck gr ou nd Pet it io ne r an d Ei le enFis he r (p et it io ne r’s fo rm er s po us e) were m arri edon Aug us t 2 4, 1 97 4. OnJu ne 1, 2 00 0, the y sep arat edpu rs ua ntto a writ te n s ep arat io n- 4 -

ag reem en t (s ep arat io n a gr eem en t) a ndrem ai ne d s ep arat edun ti l the ir d iv or ce o n Ju ly 11, 2 00 2. Th ey

ha ve th ree c hi ldren , G.R., T. R., an d E.R. 2 The sep arat io n a gr eem en t awa rd edso le leg al cu st od y of t he th ree c hi ldren to pe ti ti on er’s fo rm er s po us e. Purs ua ntto th e se pa rat io n a gr eem en t, p et it io ne r was ob li ga te d t o p ay

$1 ,02 6 b iwee kl y

to pe ti ti on er’s fo rm er s po us e “ fo r supp ort o f th e th ree ( 3) un em an ci pa te d i ss ue of t he ir m arri ag e * * * . Chi ldsupp ort fo r eac h c hi ld sh al l ce as e upo n the oc cu rren ce o f anEm an ci pa ti onEven t as setforth he rei n.” The sep arat io n a gr eem en t fu rth er o bl ig at edpe ti ti on er t o p ay , forth e b en efi t of hi s ch il dr en , so m e o r al l o f th e fo ll owi ng ex pe ns es : (1 ) li fe i ns ur an ce; (2) cl ot hi ng ; (3 ) m ed ic al ex pe ns es ; an d (4 ) ch il d c are, i nc lu di ng su m m er cam p and aft er-s ch oo l ac ti vi ti es . W ith re sp ectto th e afo rem en ti on edex pe ns es , th e se pa rat io n a gr eem en t p ro vi de s: ARTICLE VIII SUPPORT AND MAINTENANCE OF THE W IFE AND CHILD 1. (a ) * * * [T]he h us ba nddu rin g h is li fet im e sh al l p ay to th e Wife, as an d fo r supp ort o f th e th ree ( 3) un em an ci pa te d i ss ue of the ir m arri ag e, th e su m of F IVE HUNDRED T HIRTEEN ($5 13 .00 ) DOLLARS per week , whi chsu m

sh al l b e p ai d t o the W ife bi -week ly in the am ou ntof $1 ,02 6.0 0. Ch il d s up po rt f oreach ch il d s ha ll ceas e upo n the oc cu rren ce o f anEm an ci pa ti on Even t as setforthhe rei n. * * * * * * * W e ref er t o m in orch il dr enby the ir i ni ti al s. See Ru le 27 (a)( 3)
. 2- 5 -

1. (e ) The h us ba ndag rees to pro vi de a m in im um li fe i ns ur an ce p ol ic y of ONE HU NDRED FIFTY THOUSAND ($ 15 0,0 00 .00 ) DOLLARS fo r th e b en efi t o f th e in fan t i ss ue of t he m arri ag e, su chsu m pa y ab le to th e Wife as irr ev oc ab le tru st ee. * * * * * * * (ii ) Inth e ev en t the Hus ba ndfai ls to pay th e p rem iu m

on sai d in su ran ce p ol ic y , th eninth atev en t the Hus ba ndsh al l b e res po ns ib le to rei m bu rs e th e Wife fo r sa idpa ym en ts . The m on ie s due an d o win g th e Wife fo r th e p aym en t o f th e afo rem en ti on edin su ran ce p rem iu m s sh al l b e co ns id eredas a dd it io na l ch il d s up po rt. * * * * * * * 4. Th e Hus ba ndsh al l p ay to th e Wife th e su m

of TWO HU

NDRED FIFTY ($ 25 0.0 0) DOLLARS onor b efo re Au gu st15 th each y ear a nd on or b efo re Ma rch 15 th each y ear a s a c lo th in g a ll owanc e fo r T.R. an d E.R. Up on th e em an ci pa ti on of o ne ch il d, s ai d s um sh al l b e reduc edto ONE HU

NDRED FIFTY ($ 15 0) DOLLARS to be pa id twi ce a year. * * * * * * *

ARTICLE X MEDICAL EXPENSES The pa rti es ag ree t ha t the ch il dr en ’s un rei m bu rs edm ed ic al an d de nt al ex pe ns es wil l b e p ai d o ne -th ird(1/ 3) by the W ife an d two- th ird (2 /3 ) by the Hus band . The Hu sb an d a gr ees to m ai nt ai n h eal th in su ran ce an d m ajorm ed ic al co ve rag e fo r th e in fan t ch il dr en , un ti l th e em an ci pa ti on of t he ch il dr en . * * *- 6 - ARTICLE XI CHILD CARE * * * * * * * The Hus ba ndsh al l p ay

for2/ 3 o f su m

m er cam p e xp en se s fo r E.R. andth e Wife sh al l p ay 1/ 3 o f sa m e. The Hu sb an d’s o bl ig at io n sh al l n otex ceedSEVEN HU NDRED FIFTY ($ 75 0.0 0) DOLLARS un le ss othe rwis e ag reedinwrit in g. * * * * * * * The Hus ba ndsh al l b e res po ns ib le to pa y for two th ird s (2 /3 ) of an y aft er s ch oo l ac ti vi ti es an d tut or in g fo r E.R. an d the W ife sh al l p ay on e th ird(1/ 3) of s am e. * * * On Fe brua ry

14 , 20 07 , th e Fam il y

Co urt o f th e St at e o f New York i ss ue d a n or de r m od ifyin g a n o rd er o f supp ort o n c on se nt(m od ifyin g o rd er) re du ci ng pe ti ti on er’s b iwee kl y

ch il d s up po rt o bl ig at io n t o $ 78 1.6 9, ef fect iv e Oct ob er 1 9, 20 06 , forth e supp ort o f hi s ch il d E.R. (b iwee kl y ch il d s up po rt p aym en ts ). Purs ua ntto th e m od ifyin g o rd er, dur in g 2 00 8 p et it io ne r m ad e 2 6 b iwee kl y ch il d
supp ort p aym en ts effe ct edth ro ug h p ayro ll de du ct io ns . Also du rin g 2 00 8, pe ti ti on er m ad e p aym en ts att rib ut ab le to hi s ch il dr en ’s li fe i ns ur an ce p rem iu m s, cl ot hi ng ex pe ns es , m ed ic al expe ns es , andch il d c are e xp en se s, i nc lu di ng th e co st s of su m m er ca m p a ndaft er-s ch oo l ac ti vi ti es .- 7 -

On h is 20 08 Fed eral in co m e ta x re tu rn , pet it io ne r cl ai m eda $2 6,8 01 al im on y de du ct io n. Acco rd in g t o the no ti ce, p et it io ne r’s al im on y de du ct io n i s li mit edto $1 ,62 8. 3 Dis cu ss io n It i s wel l s et tl edth atde du ct io ns are a m at te r of leg is lati ve gra ce an d tha t the ta xp ay er m

us t es tabl is h e nt it le m en t t o a ny deduc ti on cla im ed . Rul e 1 42 (a); INDOPCO, In c. v. Co m

m is si on er, 5 03 U.S. 79 , 84 (19 92 ); Ne w Col on ia l Ic e Co
. v. Hel ve rin g, 2 92 U.S. 43 5, 4 40 (19 34 ). In t he cas e o f anin di vi du al , sec ti on 21 5( a) “ al lo w[s] as ade du ct io n a n a m ou ntequa l t o the ali m on y * * * p aym en ts pa iddu rin g s uc h i nd iv idua l’s t ax ab le y ear.” The d efi ni ti on of “ al im on y ”, fo r pu rp os es of s ect io n 2 15 (a), i s fo un d i n s ect io n 7 1. Se c. 21 5( b)
. Inge ne ral an d a s re le va nthe re, s ect io n 7 1( b) (1 ) de fin es th e te rm “ al im on y ”
as an y cas h p aym en t i f: (1 ) th e p aym en t i s re cei ve d b y a sp ou se un de r a d iv or ce

4
orsep arat io n i ns tru m en t; (2) th e d iv or ce o r se pa rat io n i ns tru m en t d oe s n otst at e 5
The reco rddo es no t re ve al ho w th is am ou ntwas c om pu te d, ex cep t i t 3 ap pe ars th atth is is th e am ou ntof a li m on y in co m e rep orte d o n the 20 08 Fed eral in co m e ta x re tu rnof p et it io ne r’s fo rm er s po us e. Fo r pu rp os es of s ec. 7 1, the term “ sp ou se ” in cl ud es a fo rm er s po us e. Sec. 4 71 (d ). The ph ras e “ di vo rce o r se pa rat io n i ns tru m en t” as u se d i n s ec. 7 1 i nc lu de s

5 (co nt in ue d...)- 8 -

th atth e p aym en t i s n ei th er i nc lu dabl e in gro ss in co m e n orall owabl e as a de du ct io n; (3) th e p ay or

an d p ay ee s po us es are n otm em be rs of t he same ho us eh ol d wh enth e p aym en t i s m ad e; an d (4 ) th e p aym en t o bl ig at io n t erm in at es at th e d eath o f th e p ay ee s po us e an d the re i s n o l iabi li ty to m ak e ei th er a ca shor a pr op erty pa ym en t as a subs ti tu te forth e p aym en t af te r th e d eath o f th e p ay ee sp ou se . Sect io n 7 1( c)(1 ), ho wev er, p ro vi de s tha t the term “ al im on y ” as us edin
se ct io n 7 1( a) d oe s n otin cl ud e “ an y pa ym en t wh ic h the term s o f th e d iv or ce o r se pa rat io n i ns tru m en t fi x * * * as asu m whi chis pa y ab le forth e supp ort o f ch il dr enof t he pa y orsp ou se .” Furth er, s ect io n 7 1( c)(2 ) pr ov id es th atif the
am ountof s po us al supp ort t o b e p ai d u nd er a s ep arat io n a gr eem en t o r di vo rce de cree is to be reduc edeit he r onth e h ap pe ni ng of aco nt in ge nc y sp eci fie d i n the ag reem en t re la ti ng to a ch il d (e .g., at ta in in g asp eci fie d a ge or l eav in g fo r sc ho ol ),
se e se c. 71 (c)( 2) (A), orat ati m e th atcancle arl y be ass oc ia te d wi th su cha co nt in ge nc y , see sec . 71 (c)( 2) (B), an am ou ntequa l t o the am ou ntof the reduc ti on wil l b e tr eat edas c hi ldsupp ort, s ec. 7 1( c)(2 )(A) an d (B ); B erry v. Co m mis si on er, T.C. Mem o. 2 00 5- 91
. (...co nt inue d) 5 th e se pa rat io n a gr eem en t an d the m od ifyin g o rd er. See sec . 71 (b )(2 ).- 9 -

The pa rti es ag ree wi th res pe ctto th e p rin ci pl es jus t s ta te d, b utth ey di sa gr ee as to whet he r th e p orti onof t he ali m on y de du ct io n d is al lo wedinth e n ot ic e fi ts withi n the de fin it io n o f “ al im on y ”. Pet it io ne r ta ke s the po si ti on th atpa ym en ts
m ad e p ur su an t t o the sep arat io n a gr eem en t an d/ or th e m od ifyin g o rd er s at is fy all of th e requi rem en ts of s ect io n 7 1( b) (1 ), an d the refo re the pa ym en ts co ns ti tu te

“ al im on y ” wit hi n the m ean in g o f se ct io ns 71 an d 2 15 . Accor di ng to pe ti ti on er, the al im on y de du ct io n h ere i n d is pu te pro pe rly inc lu de s amoun ts for : (1 ) un al lo cat ed
am ount s fo r th e supp ort an d m ai nt en an ce o f hi s ch il dr enan d h is form er s po us e; (2 ) li fe i ns ur an ce fo r hi s ch il dr en ; (3 ) su m m er ca m p fo r hi s ch il dr en ; (4 ) hi s ch il dr en ’s m ed ic al ex pe ns es , clo th in g a ll owa nc e, an d a fte r-s ch oo l ac ti vi ti es ; an d (5 ) “ cred itfor

reduc ti on inpri nc ip al ”. 6 Res po nd en t d is ag rees . Accor di ng to res po nd en t, p et it io ne r is no t en ti tl edto anali m on y

de du ct io n i n e xc es s o f $1 ,62 8 b ecau se (1) no ne of t he pa ym en ts fit withi n the de fin it io n o f “ al im on y ”, se e se c. 71 (b )(1 ); a nd/o r (2 ) al l o f th e p aym en ts co ns ti tu te ch il d s up po rt wi th in th e m ean in g o f se ct io n 7 1( c). W e co ns id er ea chcat eg ory of p aym en t s ep arat el y .

Thi s ap pa ren tl y

rel at es to anam ou ntpa idon th e m ortg ag e o n the m ari ta l 6 res id en ce.- 10 -

Bi week ly Chi ldSupp ort Pa ym en ts The m od ifyin g o rd er s ta te s tha t p et it io ne r’s “ba si c ch il d s up po rt o bl ig at io n is $7 81 .69 bi -week ly” for the supp ort o f hi s ch il d E.R. The m od ifyin g o rd er furth er s tate s tha t p et it io ne r an d h is form er s po us e “ vo lu nt ari ly sti pu la te d t o c hi ld
supp ort fo r th e ch il d p ay ab le by Carl Ra is ig to Eil eenRai si g v iath e Supp ort Co ll ect io n Un itinth e am ou ntof $ 78 1.6 9 b i-we ek ly.” In acc or da nc e wit h the
m od ifyin g o rd er, p et it io ne r m ad e 2 6 b iwee kl y supp ort p aym en ts du rin g 2 00 8. The ex pl ic itlan gu ag e o f th e se pa rat io n a gr eem en t an d the m od ifyin g o rd er le adto th e in es cap ab le co nc lu si on th atth e b iwee kl y pa ym en ts co ns ti tu te ch il d
supp ort an d n otali m on y . Accor di ng to pe ti ti on er, h owe ve r, Keanv. Co m m is si on er, 4 07 F.3d18 6, 1 92 (3dCir . 20 05 ) (“ Whe re s up po rt p aym en ts are un al lo cat ed , as i n thi s ca se , th e en ti re am ou ntis attrib ut ab le to th e p ay ee s po us e’s in co m e.”), af

f’g T.C. Mem o. 2 00 3- 16 3, s up pl em en te d b y T.C. Mem o. 2 00 3- 27 5, al lo ws fo r th e av oi da nc e o f wha t wo ul d s eem to be anin ev it ab le res ul t. Rel y in g 7 up on Kean , pet it io ne r arg ue s tha t the bi week ly sup po rt p aym en ts do no t qua li fy as ch il d s up po rt b ecau se th e se pa rat io n a gr eem en t d oe s n otex pl ic it ly fix the am ou nt

W e h av e co ns id eredpe ti ti on er’s o th er ar gu m en ts an d fi ndth em 7 unpe rs ua si ve .- 11 -

of ch il d s up po rt a nd , th eref or e, th e “un al lo cat ed ” supp ort p aym en ts m us t b e al im on y . See s ec. 7 1( c)(1 ). InKeanv. Co m

mis si on er, 4 07 F.3dat 1 92 , th e U.S. Co urt o f App eal s fo r th e Thi rdCir cu ithe ldth atwhen th e te rm s o f a d iv or ce o r se pa rat io n i ns tru m en t d o no t fi x asu m

of m on ey

as c hi ldsupp ort, o r pr ov id e th atth e p aym en ts are re du ced
on th e h ap pe ni ng of aco nt in ge nc y ev en t re la te d t o the ch il d o r ata ti m e rel at edto su chanev en t, the “ supp ort p aym en ts are u na ll oc at ed ” an d “ th e en ti re am ou ntis at tri bu tabl e to th e p ay ee s po us e’s in co m e.” Pet it io ne r’s rel ianc e upo n Kea n, o f co ur se , is m is pl aced . The fac ts inth is
m at te r are read il y

di st in gu is habl e fro m

th os e in Kean . The Kean cas e ad dr es se s th e si tu at io n wh ere t he supp ort p aym en ts are u na ll oc at edas b etweenth e ch il dr en an d the sp ou se an d n o c on ti ng en cy ex is ts with re sp ectto anev en t re la te d t o the ch il dr enth atreduc es th e supp ort p aym en ts . Evena cu rs ory read in g o f th e se pa rat io n a gr eem en t an d the m od ifyin g o rd er u na m bi gu ou sl y de m on strat es th at th es e d iv or ce i ns tru m en ts pro vi de th atth e b iwee kl y supp ort p aym en ts are fo r th e supp ort o f pe ti ti on er’s ch il d, E.R. Furth erm or e, pe ti ti on er’s o bl ig at io n t o m ak e th e bi week ly sup po rt p aym en ts ceas es “up on th e o ccu rren ce o f anEm an ci pa ti on Even t as setforth ” in th e se pa rat io n a gr eem en t. See sec . 71 (c)( 2) . It fo ll ows th atth e- 12 -

bi week ly sup po rt p aym en ts are ch il d s up po rt u nd er s ect io n 7 1( c)(1 ) an d (2 ) an d
are n otde du ct ib le as a li m on y . Life Ins ur an ce Pr em iu m s The sep arat io n a gr eem en t re qu ire s p et it io ne r to pro vi de li fe i ns ur an ce fo r th e b en efi t o f hi s ch il dr en . InSp erl in g v . Comm is si on er, 7 26 F.2d94 8, 9 54 (2dCir . 19 84 ), aff’g T.C. Mem o. 1 98 2- 68 1, the Co urt o f App eal s fo r th e Sec on d C irc ui t h el d tha t i n o rd er fo r pr em iu m

pa ym en ts on a li fe i ns ur an ce p ol ic y to co ns ti tu te in co m e to anex wife (an d a cco rd in gl y

be de du ct ib le by an ex -hus band ) “ th ere m us t b e (a) ab so lu te own ers hi p o f th e p ol ic y

by the wife ; an d (b ) anirr ev oc ab le de si gn at io n o f th e wif e as be ne fic iary .” See Pi el v. Co m m is si on er, 3 40 F.2d88 7, 8 90 (2dCir . 19 65 ) (h ol di ng th at“ own ers hi p o f th e p ol ic ie s i s n eces sa ry to supp ort a d educ ti on ”), aff’g T.C. Me m o. 1 96 3- 34 6; Hy de v. Co m m is si on er, 3 01 F.2d27 9 (2 d C ir. 1 96 2) , aff’g 3 6 T.C. 5 07 (19 61 ); Weil v. Co m m is si on er, 2 40 F.2d58 4 (2 d C ir. 1 95 7) , aff’g i n p art , rev ’g inpa rt 2 3 T.C. 6 30 (19 55 ) an d 2 2 T.C. 6 12 (19 54 ); s ee al so Rev . Rul . 70 -2 18 , 19 70 -1 C.B. 1 9. Neit he r pr on g o f th e two -p oi nttes t en um erat edinSp erl in g i s s at is fie d h ere. Fi rs t, p et it io ne r’s fo rm er s po us e was no t the ab so lu te own er o f th e li fe i ns ur an ce po li cy . Rath er, p ur su an t t o the sep arat io n a gr eem en t s he was the irr ev oc ab le- 13 -

tru st ee o f th e p ol ic y . Seco nd , th ere was no irr ev oc ab le de si gn at io n o f pe ti ti on er’s fo rm er s po us e as be ne fic iary of t he li fe i ns ur an ce p ol ic y . The s ep arat io n ag reem en t d es ig na te d p et it io ne r’s “ in fan t i ss ue of the m arri ag e” as th e be ne fic iarie s. Acco rd in gl y , th e li fe i ns ur an ce p rem iu m s p ai d i n 2 00 8 a re n ot de du ct ib le as a li m on y . Su m m er Ca m p, M ed ic al Exp en se s, Cl ot hi ng All owanc e, an d Aft er-S ch oo l Acti vi ti es The sep arat io n a gr eem en t re qu ire d p et it io ne r to m ak e p aym en ts to pe ti ti on er’s fo rm er s po us e in 20 08 for : (1 ) su m m er ca m p e xp en se s fo r E.R., (2)
un rei m bu rs edm ed ic al an d d en ta l ex pe ns es forhi s ch il dr en , (3) a cl othi ng st ip en d of $2 50 pa idtwi ce a year fo r T.R. an d E.R., an d (4 ) aft er-s ch oo l ac ti vi ti es an d

8 tu to rin g fo r E.R. Pet it io ne r, ag ai n re lying Keanv. Co m m is si on er, 4 07 F.3dat 1 92 , arg ue s th at : (1 ) be cau se th e se pa rat io n a gr eem en t d oe s n otex pl ic it ly fix t he am ou ntof ch il d s up po rt f

orth e afo rem en ti on edex pe ns es , paym en t o f th os e ex pe ns es co ns ti tu te s al im on y , and(2) th e p aym en ts canbe us ed“ to pa y * * * [p et it io ne r’s]
ex -wif e’s de bt s” an d the refo re ca nn otbe co ns id eredch il d s up po rt. Ag ai n, res po nd en t d is ag rees , andso do we. Upo n the em an ci pa ti on of o ne ch il d, the $2 50 clo th in g s ti pe ndsh al l b e 8 reduc edto $1 50
.- 14 -

Fi rs t, the sep arat io n a gr eem en t p ro vi de s a f ix edpa ym en t, ei th er i n t erm s o f
anam ou ntof m on ey

or apa rt o f th e p aym en t, fo r eac h o f th e afo rem en ti on ed
ex pe ns es forth e supp ort o f pe ti ti on er’s ch il d o r ch il dr en . See s ec. 7 1( c)(1 ). Seco nd , with re sp ectto clo th in g a ndm ed ic al ex pe ns es th e se pa rat io n a gr eem en t co nt ai ns ex pl ic itco nt in ge nc ie s wh ic h, i f sa ti sf ie d, re du ce p et it io ne r’s requi rem en t to m ak e rel at edpa ym en ts . See s ec. 7 1( c)(2 ). The ex is te nc e o f th e co nt in ge nc ie s tri gg ers ap pl ic at io n o f se ct io n 7 1( c)(1 ), whi chrequi res th e p aym en ts m ad e fo r cl ot hi ng an d m ed ic al ex pe ns es be tre at edas c hi ldsupp ort. Acco rd in gl y , paym en ts
m ad e fo r th e afo rem en ti on edex pe ns es do no t co ns ti tu te ali m on y withi n the
m ean in g o f se ct io n 7 1 o r 21 5. Reduc ti oninPri nc ip al Pet it io ne r cl ai m s tha t h e m ad e a $ 3,1 32 pay m en t fo r “ cred it s fo r reduc ti on in pri nc ip al ” in 20 08 an d tha t the pa ym en t i s d educ ti bl e as ali m on y . As n ot ed , sec ti on 71 (b )(1 ) de fin es th e te rm “ al im on y ” to in cl ud e, am on g ot he r requi rem en ts , any cash pa ym en t i f th e p aym en t i s re cei ve d b y a sp ou se un de r a d iv or ce i ns tru m en t. No th in g i n the reco rdsu gg es ts th atpe ti ti on er was ob li ga te d to m ak e th is pa ym en t p ur su an t t o the sep arat io n a gr eem en t, the m od ifyin g o rd er, oran y othe r do cu m en t tha t wo ul d fi t wi th in th e d efi ni ti onof adi vo rce i ns tru m en t. Tha t b ei ng so , for

ou r pu rp os es we tre atth is pa ym en t as vo lu nt ary an d the refo re- 15 -

no t co nt em

pl at edwithi n the de fin it io n o f al im on y . See s ec. 7 1( b) (1 )(A); Tay lo r v. Co m m is si on er, 5 5 T.C. 1 13 4 (1 97 1)
. Acco rd in gl y , pet it io ne r is no t en ti tl edto a de du ct io n fo r al im on y pa y m en ts cl ai m edon hi s 2 00 8 re tu rnto th e ex te ntth e p aym en ts ex ceed$1 ,62 8. To re fle ctth e fo reg oi ng , An ap pr op ria te ord er wi ll be is su ed
.