4:33 PM Jul 15th
• It is very common for the IRS, on audit, to recharacterize alimony payments. For payee spouses, this often results in the IRS finding that the spouse failed to report their alimony income. For the payor spouses, this often results in the IRS disallowing tax deductions for the alimony payments. For example, in Przwoznik v. Commissioner, T.C. Summary Opinion 2008-50, the U.S. Tax Court found that Âunallocated familiy support was child support and not tax deductibe alimony. The U.S. Tax Court reached the opposite conclusion in Raga v. Commissioner, T.C. Summary Opinion 2008-46, finding that unallocated maintenance and child support was alimony and therefore it had to be included in the payee spouses gross income. …
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