• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Pridgeon & Zoss, PLLC

Just another WordPress site

  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Home / IRS / Newly divorced couples may be subjected to IRS scrutiny
  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Call
Contact
Blog

Newly divorced couples may be subjected to IRS scrutiny

When two people fall in love, old clichés would suggest that they have been struck by Cupid’s arrow. Conversely, it seems as though the Internal Revenue Service may be drawing back its bow and taking aim at newly divorced couples.

A report from the Journal of Accountancy shows that the IRS is dedicating efforts to track down people who have misallocated taxable income as it relates to alimony payments. This is apparently a reaction to a report from the U.S. Treasury Department study allegedly showing commonplace discrepancies in tax filings made by divorced people.

As a general rule, a person who pays alimony to his or her ex-spouse can deduct that amount from taxable income. Individuals receiving alimony payments, on the other hand, should claim payments as taxable income. Of course, it makes sense that the amounts deducted and added to income correspond between formerly married couples.

For a person filing income tax returns for the first time after divorce, the process may not be entirely clear. As such, it’s understandable why someone could make an honest mistake when trying to incorporate alimony payments into his or her tax filing.

At the same time, people may not understand that they have might have tax obligations when alimony is included in a divorce settlement. For those who are unfamiliar with tax and divorce law, comprehending the complex components of an agreement may not be easy.

Of course, newly divorced couples may want to receive clarity surrounding the tax implications of divorce from the start in order to avoid issues down the road. Unfortunately, however, even proactive people can get caught up in the complex web of tax regulations.

Source: Boston.com, “The IRS thinks you’re cheating on your alimony,” Chris Chen, May 29, 2014

On Behalf of Pridgeon & Zoss, PLLC May 30 2014 IRS

Primary Sidebar

Do Not Delay Responding to a Tax Notice

Name(Required)

Practice Areas

Tax Disputes

  • Tax Litigation
  • Audits
  • Tax Appeals
    • Appealing a Levy Action

Business & Payroll Taxes

  • Trust Fund Assessments
  • Complying with Sales and Use Tax Laws

Self-Employed

  • No Taxes Withheld

Outstanding Balances

  • IRS Collections and Currently Not Collectible Status
  • Settlement Options
    • Offers in Compromise
    • Installment Agreements

Latest Blogs

What is a Trust Fund Recovery Penalty?

January 31, 2023

A Guide to the Minnesota Tax Appeal Process

January 27, 2023

The Secret to Successful Self-Employment

October 19, 2022

Things You Should Expect Being Self-Employed in Minnesota

October 13, 2022

The Importance of Source Documents

July 7, 2022

Footer

Edina Tax Law Office

7301 Ohms Lane, Suite 420
Edina, MN 55439

Telephone: 952-835-8320

Fax: 952-835-0201

St. Anthony Tax Law Office:

2812 Anthony Lane S, Suite 200
St. Anthony, Minnesota 55418

Telephone: 612-455-8948

Pridgeon & Zoss, PLLC provides legal counsel for clients in Minnesota and Western Wisconsin

© 2023 Pridgeon & Zoss, PLLC. All Rights Reserved.

Disclaimer | Site Map | Privacy Policy