Dalton v. Commissioner

OPINION.

Oppee, Judge:

Whether the amounts received by petitioner are taxable under section 71(a), I.K..C. 1954,1 depends primarily upon whether the controversial amounts received pursuant to an agreement between petitioner and her former husband providing for a lump-sum settlement, sanctioned by the divorcing court, constituted alimony arrearages and whether they discharged a legal obligation imposed on the husband under such court’s original decree.

While petitioner apparently agrees with respondent that a lump-sum settlement or installment payment of alimony arrearages meets the section 71…