This is the second article in a four part series addressing frequently asked questions related to protection from joint and several liability in divorce. We are often asked about the language that a taxpayer’s attorney should include in the divorce decree to protect the taxpayer from joint and several tax liabilities for only their spouse’s [...]
This is the first article in a series addressing frequently asked questions related to protection from joint and several tax liability in divorce. We are often asked about the language that a taxpayer’s attorney should include in the divorce decree to protect the taxpayer from joint and several tax liabilities resulting from only their spouse’s [...]
This is the fifth post in the Frequently Asked Tax Questions in Family Law Cases series. This series is intended to answer questions family attorneys frequently ask us regarding tax issues. Question: Husband is awarded the shares of the family corporation and the parties agree that Wife will take her Mercedes, which is owned by [...]
This is the fourth post in the Frequently Asked Tax Questions in Family Law Cases series. This series is intended to answer questions family attorneys frequently ask us regarding tax issues. Question: A dependent spouse needs significantly more spousal support for a year or two prior to being able to return to work full time, [...]
This is the third post in the Frequently Asked Tax Questions in Family Law Cases series. This series is intended to answer questions family attorneys frequently ask us regarding tax issues. Question: Husband and Wife have an unpaid tax obligation from a prior year tax return in which they filed “Married filing jointly” status. The [...]
This is the first post in the Frequently Asked Tax Questions in Family Law Cases series. This series is intended to answer questions family attorneys frequently ask us regarding tax issues. Question: Each parent pays 50% of the child care costs to the provider. Can both parents take the tax credit for child and dependent [...]
On January 5, 2012, in Notice 2012-8, the IRS significantly modified the rules for spouses seeking Innocent Spouse Relief under Internal Revenue Code Section 6015(f), which is also known as “Equitable Relief.” Notice 2012-8 is effective immediately and supersedes the old rules in Revenue Procedure 2003-61. The IRS will evaluate all new and pending Section [...]
Parties to a divorce action may dispute the intent or impact of their agreement or the court’s order. One area of dispute is the character of a payment as alimony/maintenance or a property settlement. The payment of alimony/maintenance is deductible by the payor while the payment of a property settlement is not deductible. This issue [...]
The State of Minnesota has recently pushed the IRS regulations used to define what is really alimony/maintenance and what is child support. This is important as alimony/maintenance is deductible by the payer and child support is not deductible. Admittedly, alimony/maintenance is included in the recipient’s income, but quite often, the recipient’s tax rate is lower [...]