Accepted Answer

This is from IRC Sec. 71:

(b) Alimony or separate maintenance payments defined
For purposes of this section -

(1) In general
The term "alimony or separate maintenance payment" means any payment in cash if -

(A) such payment is received by (or on behalf of) a spouse under a divorce or separation instrument,

(B) the divorce or separation instrument does not designate such payment as a payment which is not includible in gross income under this section and not allowable as a deduction under section 215,

(C) in the case of an individual legally separated from his spouse under a decree of divorce or of separate maintenance, the payee spouse and the payor spouse are not members of the same household at the time such payment is made, and

(D) there is no liability to make any such payment for any period after the death of the payee spouse and there is no liability to make any payment (in cash or property) as a substitute for such payments after the death of the payee spouse.

I think you may have a point. Based on this tax law, you may be able to argue that the 1999 state codification satisfied item D above. Obtain a copy of your state codification. Write a letter to the IRS and include this excerpt. Ask them to abate the assessment based on this. Follow the instructions on the notice/letter you received from the IRS.

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Expert:	JK_CPA
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Answered:	10/2/2009

Certified Public Accountant (CPA)

with 5 years accounting experience and 18 years tax experience.