Evelyn Marks, a very successful executive with the bank that your firm represents, has brought you the following letter from the Internal Revenue Service. proposing certain adjustments in her Year-l income tax return. She would like your advice whether it would be advisable for her to contest these proposed changes. The following items were claimed as alimony deductions.

These items are not eligible for such deduction Payment for Blue Cross & Blue Shield medical insurance for Mr. Davis' mother $4,600 Year-1 interest on tax exempt municipal bonds issued by the City of Chapel Hill, North Carolina $15,000 Ms.

Marks feels that each of the items proposed for adjustment above should be deductible as alimony

Please explain why these items not eligible for alimony deduction?