Henricks v. Comm’r, T.C. Memo. 2014-192, 2014 WL 4723148 (2014) (a) Facts: A Florida divorce decree awarded custody of two children to the wife. It allowed the wife to claim one child as a dependent for tax purposes, and allowed the husband to claim the other child as a dependent for…
McBride v. Comm’r, T.C. Memo. 2015-6, 2015 WL 393011 (2015) (a) Facts: The taxpayer, his grown son and daughter, and his daughter’s child all lived in the same household. On her federal tax return, the daughter claimed an exemption for her child. On his federal tax return, the taxpayer claimed dependency…
Yale-New Haven v. Nicholls, 788 F.3d 79 (2d Cir. 2015) (a) Facts: A husband and wife were divorced in Connecticut in 2008. The divorce decree incorporated a settlement agreement, which provided that the husband would transfer to the wife half of the marital share of his retirement benefits. No QDRO was entered…
Hughes v. Comm’r, T.C. Memo. 2015-89, 2015 WL 2180505 (2015) (a) Facts: A husband owned stock in a consulting business that was growing in value. He was afraid that if he retained the stock, his former wife would seek to reopen their divorce decree. He therefore gave the stock to his…
Muniz v. Comm’r, T.C. Memo. 2015-125, 2015 WL 4126356 (2015) (a) Facts: A Florida separation agreement provided that the husband would pay wife $1,000 per month in alimony. The husband did not pay on time, and the court entered an enforcement order directing the husband to pay $6,000 in alimony due under…
Milbourne v. Comm’r, T.C. Memo. 2015-13, 2015 WL 393040 (2015) (a) Facts: A husband and his wife separated. She proposed a separation agreement, which required him to pay $6,000 per month in alimony. The husband refused to sign this agreement, as he did not want to pay more than $2,500 per…
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…