North Carolina Divorce Lawyers Blog

Articles Tagged with IRS

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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 tax purposes. Both parties were ordered to fill out forms necessary to transfer the exemption. But the wife did not actually fill out and sign and forms, and the wife did not sign the court’s judgment.

The husband claimed the dependency exemption for the second child, as the decree clearly permitted. The IRS disallowed the dependency exemption and assessed a deficiency. Continue reading →

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By: Dana M. Horlick, Attorney, Woodruff Family Law Group
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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 exemptions for the son, the daughter, and her child. The IRS disallowed all three of the taxpayer’s exemption, and assessed a deficiency. Continue reading →

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By: Dana M. Horlick, Attorney, Woodruff Family Law Group
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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 to enforce this language, and the husband did not make the required transfer to the wife. Continue reading →

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By: Dana M. Horlick, Attorney, Woodruff Family Law Group
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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 present wife. Continue reading →

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By: Dana M. Horlick, Attorney, Woodruff Family Law Group
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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 the agreement. The husband paid this amount. Continue reading →

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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 month in alimony.

The parties could not agree upon an amount of support and no agreement was initially signed. While the parties were negotiating, the husband paid the wife $36,000 in monthly payments of varying amounts, usually $2,000 but sometimes $4,000 or $5,000. After a total $36,000 had been paid, the parties signed an agreement calling for support of $4,500 per month, with certain possible future reductions.

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By Carolyn J. Woodruff, JD, CPA, CVA
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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 North Carolina. Continue reading →

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by Carolyn J. Woodruff, JD, CPA, CVA
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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) Continue reading →

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by Carolyn J. Woodruff, JD, CPA, CVA
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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 the IRS.

So, if you are in Asheboro or Reidsville, or wherever, this four part article should answer your questions about innocent spouse tax law and how it might affect your North Carolina divorce.

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by Carolyn J. Woodruff, JD, CPA, CVA
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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 issues outstanding.  Further, understanding innocent spouse can many times help with an otherwise devastating tax situation.

This article will be in four parts, so be sure to read all four parts.  Also, check this blog regularly for updates on innocent spouse law as I will write about it frequently.  I’ll keep you advised of new cases and new rulings from the IRS.

Continue reading →