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 →
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 →
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 →
Members of some religious groups can submit a request to be exempt from the Social Security tax, but this choice may limit the tax credits you can claim on your federal return. For example, in order to claim a child tax credit, your child must have a Social Security number. A child who has an individual taxpayer identification number (ITIN) will not qualify. Continue reading →
Any parent over the age of 18 whose rights have not been terminated has an obligation to financially support their children. If you are going through a divorce, have recently separated from your child’s other parent, or are involved in a child support matter for any other reason, it can be helpful to understand how support amounts are calculated.
Dolan v. Dolan, 148 N.C. App. 256 (2002).
In a previous post, we discussed the basics and legal implications of smart contracts built upon blockchain technologies. These smart contracts are one of the highly touted tools that are set to streamline business. The recent law that formed regulatory sandboxes to promote innovative fintech (financial technology) products portends this State’s promotion of such tools as smart contracts. It is an interesting time to be in the fintech space. Continue reading →
Craven County o/b/o Jessica L. Wooten v. Adel Hageb (No. COA20-442)
Defendant Adel Hageb (“Father”) and Plaintiff Jessica L. Wooten (“Mother”) were never married but were involved in a romantic relationship. Mother gave birth to a child in 2016 and another child in 2017. After it was determined that Adel was the biological father of both children, the court consolidated the two child support cases and ordered Father to provide health insurance coverage for both children and pay Mother $2,554.00 per month in child support. Then, on September 9, 2019, the issue of permanent child support came on for hearing. The court found Father to have a gross income of $19,454.39 per month. Additionally, although two children born of another relationship lived full-time with Father, the court gave Father credit for one child because Father’s name was not listed on the birth certificate of the other child. Father timely appealed. Continue reading →
North Carolina Divorce Lawyers Blog