North Carolina alimony statutes and state case law make technicalities on the “death” element of alimony under federal tax law difficult, and one needs to exercise extreme care when drafting a private alimony agreement or contract in North Carolina. Unlike many states, all alimony awards in North Carolina are not…
Schilling v. Comm’r, T.C. Memo. 2012‑256, 2012 WL 3848477 (2012) (a) Facts: The parties settled their divorce case by signing a separation agreement. The agreement awarded the wife $2,450 per month on spousal support for six years. It, further, provided that the wife’s spousal support would drop by specified amounts…
This article is part 4 of a series of articles regarding Innocent Spouse. This final blog on the basics of the current Innocent Spouse tax law will do two things: 1) summarize changes discussed in the first three articles; 2) give some practical guidance to attorneys, CPAs, and clients in…
Part 3 of a 4-Part Series on Innocent Spouse Basics (a) The Former Requirements: Rev. Proc. 2003-61, 2003‑32 I.R.B. 296, 2003 WL 21708514 (Aug. 11, 2003) (b) The New Requirements: Rev. Proc. 2013-34, 2013‑43 I.R.B. 397, 2013 WL 5179241 (Oct. 21, 2013) (1) This is the new Revenue Procedure setting…
This article is part 2 of a 4 part series on Innocent Spouse basics. Be sure to read all four parts. Also, check this blog regularly for new information on innocent spouse law, as I will write about it frequently. I’ll keep you posted of new cases and developments from…
I have always said: “the Internal Revenue Service is the third party to the North Carolina Divorce”. It is, therefore, incumbent upon parties to a divorce, their counsel, and their CPAs in North Carolina to understand the Innocent Spouse rules of the Internal Revenue Code, particularly if there are tax…
I.R.C. § 414(p) and 29 U.S.C. § 1056 Morris v. Metropolitan Life Ins. Co., 751 F. Supp. 2d 955 (E.D. Mich. 2010) (a) Facts: When the husband and the wife were divorced, the state court divorce decree extinguished all rights held by one in any life insurance of the other. …
Molinet v. Comm’r, T.C. Memo. 2014-109, 2014 WL 2573992 (2014) (a) Facts: A husband and wife were married. The wife was from Cuba and was admitted to the United States on a fiancé visa. The husband controlled the marital finances, with minimal input from the wife. She had access to…
In North Carolina, as well as nationwide, family law and divorce cases are filled with bad tax returns. Let’s face it, generally one spouse handles the finances and the other spouse doesn’t. Enjoy Santa as the Tax Court finds this husband innocent. Santa v. Comm’r, T.C. Memo. 2013178, 2013 WL…