Stanley T. Johnson Constance Johnson v. Commissioner of Internal Revenue

Stanley T. Johnson and his present wife, Constance Johnson (“Appellants”), appeal from the United States Tax Court’s decision that there is a deficiency in income tax due from them for the taxable year 1997. The court has jurisdiction pursuant to 26 U.S.C. § 7482 . The gravamen of Appellants’ argument is that Internal Revenue Code (“I.R.C.”) § 71, as amended in 1984 (“new § 71” or the “new law”), should apply to Mr. Johnson’s deduction for alimony in the 1997 tax year, rather than the version of I.R.C. § 71 that existed prior to the amendment (“old § 71” or the “old law”). We disagree and affirm the decision of the Tax Court.

I

Stanley Johnson was formerly married to Joyce J. Johnson (“Joyce”). Joyce was issued a decree of divorce on May 14,1976. Mr. Johnson was required to pay alimony to Joyce in amounts ranging from $1,250 per month at the outset to $2,400 per month. On March 16, 1993, Mr. Johnson filed a Motion To Modify The Terms of the Divorce and Terminate Alimony Payments in the Family Division of the Clark County Nevada District Court. Joyce responded by filing a Countermotion to Increase Alimony Payments. On April 14, 1997, the district court released its Findings of…