Category Archives: DIVORCE

WRITTEN SEPARATION AGREEMENT REQUIRES EVIDENCE OF “MEETING OF MINDS” (AN AGREEMENT) FOR ALIMONY DEDUCTION

One of the requirements for a cash payment to be treated as alimony under Section 71(b) (1) is that it generally be paid pursuant to a divorce decree or decree of separate maintenance(or written instrument incident to the decree such … Continue reading

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STATE COURT JUDGEMENT FAILS: COURT ATTEMPTS TO MICRO-MANAGE DEPENDENCY EXEMPTION ENTITLEMENT BUT DOES NOT REQUIRE CUSTODIAL SPOUSE TO SIGN AND DELIVER FORM 8332

It is important for divorce attorneys and clients to remember what a state court judge can and cannot do with regard to federal income tax matters.  Knowing the rules will help lawyers draft appropriate clauses for marital settlement agreements and … Continue reading

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TO FILE OR NOT TO FILE JOINTLY: AN ANNUAL DILEMMA

It is tax time again and most married couples will file jointly without considering the consequences or considering only the dollar tax-savings (marriage bonus) from rate splitting for single-earner couples. Couples with two wage earners more likely face a marriage … Continue reading

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TAX PAYMENTS FOLLOWING INNOCENT SPOUSE RELIEF

What is commonly referred to as “innocent spouse relief” is actually three distinct types of possible statutory relief from the usual “joint and several liability” of a spouse who elects to file a joint return with his or her mate … Continue reading

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E-FILED JOINT RETURN: TAX COURT FINDS INTENT TO FILE JOINTLY

When tax returns were filed on paper and physically signed, most taxpayers thought that they had to actually sign the return to be found to have elected to file a joint return.  The issue would arise when a paper return … Continue reading

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PUT IT IN THE MARITAL SETTLEMENT AGREEMENT

 In Luis Santana and Flor E. Vargas v. Commissioner, T.C. Memo 2012-49, the Tax Court upheld an IRS disallowance of a claimed dependency exemption for the tax year 2008 because the taxpayer Luis Santana (Luis) did not comply with the … Continue reading

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JOINT OWNERSHIP A BUSINESS DOES NOT PER SE PRECLUDE INNOCENT SPOUSE RELIEF

 The case of Sari F. Deihl v Commissioner, T.C. Memo. 2012-176 (June 21, 2012) was factually and procedurally complex.  This post deals only with one of the issues decided by the Tax Court: whether the income tax audit adjustments flowing … Continue reading

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ALIMONY DEDCUTION: PUT IT IN WRITING OR YOU’RE OUT OF LUCK

 With Pub. L. 98-369, Congress intended to end controversies over the deduction of alimony by enacting clear straightforward rules.  Thus, beginning in 1985 under Section 71 alimony, deductible to the paying spouse and includible in income by the recipient, is … Continue reading

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FORMER HUSBAND COULD NOT ESCAPE OBLIGATION TO PAY FEDERAL INCOME TAX DEBT UNDER A STATE COURT FINAL JUDGMENT BECAUSE FORMER SPOUSE SUBSEQUENTLY WAS DENIED INNOCENT SPOUSE RELIEF BY IRS

In Settonni v. Settonni, the Ohio Court of Appeals for the Eighth District, Cayahogo County (Case No. 97784, Released July 5, 2012), upheld a lower court ruling that denied, without an evidentiary hearing, the former husband’s timely filed motion to set … Continue reading

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INNOCENT SPOUSE CASE OF THE MONTH – AUGUST 2012 -CATHERINE MARIE NUMEZ f/k/a CATHERINE MARIE URIARTE, AND ROBERT URIARTE, INTERVENOR, V. COMM’R T.C. MEMO 2012-1212 (APRILS 25, 2012)

This decision once again illustrates the problems and procedural machinations that arise from a spouse’s right to intervene in Tax Court proceedings when the other spouse requests relief from joint and several liabilities under any of three escape hatches afforded … Continue reading

Posted in DIVORCE, EQUITABLE RELIEF, INNOCENT SPOUSE, IRS COLLECTIONS, JOINT RETURNS, TAX, TAX LITIGATION, Uncategorized | Tagged , , , , , | Leave a comment