Divorce decrees often include terms regarding the division of property, like bank accounts and real estate, but these court orders do not always have the authority to distribute every asset. Typically, a qualified domestic relations order (QDRO) must be used to divide and distribute rights to pension funds and certain other retirement accounts. Continue reading →
In Cotroneo v. Commissioner the Commissioner of Internal Revenue determined that Cotroneo and her husband had a tax deficiency of $15,288 and a penalty of $3,058. Continue reading →
In the case of Hopkins v. AT&T Global Information Solutions Co., the U.S. District Court ruled on cross-motions for summary judgment. The main issue in this matter was regarding the award of surviving spouse benefits to a former spouse rather than a current spouse. Continue reading →
May is National Pet Month, when we celebrate the special role pets play in our families and in our hearts. Continue reading →
Filing taxes can be complicated in the best of situations, but when there are complex factors involved, like financial control by one spouse, the outcome is not always equitable. The Internal Revenue Code Section 6015 provides a remedy for some spouses facing tax deficiencies, but there are strict qualifications for entitlement under this section. Continue reading →
Mother’s Day is supposed to be a time of celebration and connection when we honor the women who brought us into this world and raised us. But for mothers in the midst of a custody dispute, enjoying the holiday can be much more complicated both emotionally and logistically. Whether you’re navigating a new custody arrangement or involved in ongoing litigation, there are still ways to make the holiday special and avoid adding undue emotional stress. Continue reading →
In North Carolina, a habitual felon is someone who has been convicted of or pled guilty to three felonies. These defendants may be indicted as habitual felons if they have been designated as such and have been charged with another felony. North Carolina law also states that a defendant may not be prosecuted just to establish them as a habitual felon; there must be an existing felony case that the habitual felon proceeding can accompany. Continue reading →
North Carolina spouses who file federal taxes jointly are typically liable for the taxes that are due when they file. This may create issues and complications in a number of scenarios, but there is an exception to this rule if one spouse seeks to be relieved from liability.
Requesting equitable relief under the Internal Revenue Code can be challenging because taxpayers must meet specific conditions to be eligible.
For spouses and ex-spouses facing economic hardship and seeking equitable relief from joint and several tax liability, filing a request for relief under federal law may be an option. The Internal Revenue Code (I.R.C.) provides an exception to the usual rule that spouses are liable for each other’s tax debt and liabilities, but filers must provide convincing evidence that they are facing an economic hardship if they choose that route for relief.
In the case of Thomas v. Commissioner of Internal Revenue, Thomas requested relief from underpayments for three years of tax returns based on her assertion that she was facing an economic hardship. Thomas sought liability relief for tax underpayments discovered by the Internal Revenue Service (IRS) for tax years 2012 through 2014, but Commissioner denied the request. When the issue went before the United States Tax Court, the Court denied Thomas’ request for equitable relief based on economic hardship under Internal Revenue Code Section 6015(f) because she had significant assets and did not prove hardship based on her income.
Which filing status is the best option for you on your federal income tax return this year? More than one may apply, such as deciding with your spouse whether to file jointly or separately, but if you plan on filing as head of household, you must be sure you meet the requirements. Continue reading →
North Carolina Divorce Lawyers Blog