Category Archives: DIVORCE

PRO SE TAXPAYERS OFTEN DON’T SEE THE BUS THAT HITS THEM: SELF-REPRESENTATION CAN BE DANGEROUS

I receive many calls from taxpayers considering how to bring their unreported offshore accounts into compliance. Sometimes and often with respect to expatriates, these individuals will have prepared their own returns and even attempted to represent themselves through some of … Continue reading

Posted in 214 OVDP, DIVORCE, EQUITABLE RELIEF, INNOCENT SPOUSE, NEW OVDP, TAX | Tagged , , , , | 1 Comment

WHEN NOT TO REQUEST INNOCENT SPOUSE TREATMENT

The case of Kimberly A. Sorentino v Commissioner (Summary Opinion 2014-99, September 24, 2014) illustrates what can happen when a taxpayer doesn’t get the relief she needs because she’d asked for the wrong relief. Although the Court’s Summary Opinion may … Continue reading

Posted in DIVORCE, INNOCENT SPOUSE, JOINT RETURNS, TAX | Tagged , , , , , | 1 Comment

FINANCIAL INFORMATION OF OTHER SPOUSE SUBMITTED WITH JOINT OFFER IN COMPROMISE CANNOT BE OBTAINED FROM IRS

Suppose a couple who are separated and living apart have submitted a joint Offer in Compromise on an income tax liability owed on a previously filed joint return year.  Now, they are in the process of getting a divorce.  The … Continue reading

Posted in DIVORCE, IRS COLLECTIONS, TAX | Tagged , , , , | 2 Comments

AWARD FOR DUMBEST DIVORCING COUPLE

 I have seen divorcing spouses do really dumb things but this couple takes the cake and wins the award for Dumbest Divorcing Couple of the Year. The case Shai v. Shai was tried in Palm Beach County Florida before Acting … Continue reading

Posted in DIVORCE, FBARS, JOINT RETURNS, MARRIED PERSONS, RETURNS, TAX, TAX CRIMES | Tagged , , , , , , , , | Leave a comment

DEPENDENCY EXEMPTION DENIED WHEN FORM 8332 RECEIVED WHEN IRS COULD NO LONGER ASSESS TAX AGAINST FORMER SPOUSE WHO HAD ALSO CLAIMED THE EXEMPTION

Tax Court Summary Decisions are not precedent but can be educational.  In David Charles Katz and Mary Joan Wring v. Commissioner, T.C. Summary Opinion 2013-98, the Tax Court again upheld the IRS denial of a dependency exemption when Form 8332 … Continue reading

Posted in DEPENDENCY EXEMPTION, DIVORCE, TAX | Tagged , , , , , , , , | Leave a comment

UNFAIRNESS TO FORMER SPOUSE IN PAYING TAX LIABILITY OF FORMER HUSBAND IS NOT A FACTOR IN INNOCENT SPOUSE EQUITABLE RELIEF WHEN JOINT RETURN WAS FILED

O’Neil v. Commissioner T.C. Memo 2012-339 is a good innocent spouse case to read.  Without going into all of the dreary details, the bottom line is that the parties were married and then divorced.  While they were estranged and still separated, … Continue reading

Posted in DIVORCE, EQUITABLE RELIEF, INNOCENT SPOUSE, JOINT RETURNS, TAX | Tagged , , , , , | 2 Comments

LUMP SUM ALIMONY ARREARAGES SATISFIED USING A QDRO

The following question was recently posted on the American Bar Association Tax Law and Practice Discussion Board: A taxpayer who we shall describe as the Former Husband (FH) agrees to settle alimony arrearages owed to his Former Wife (FW) by … Continue reading

Posted in DIVORCE, QDRO, TAX, Uncategorized | Tagged , , , , | 4 Comments