Tag: Marriage & Divorce Tax

Taxes and Flow-Through Entities in Divorce

When a marriage involving owners of a flow-through entity is on the rocks, the intertwining of personal and business finances can create significant tax complications. This is especially true when one spouse is more involved in the business operations than the other. There are more than just tax issues to consider in divorce. But taxes… Continue reading Taxes and Flow-Through Entities in Divorce

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September 14, 2024
Recovering Taxes Paid for Another Party

If you pay tax for another party, can you recover the payment if the tax is not owed? The answer is generally “no,” as you cannot sue the Federal government unless it consents and it only consents in limited circumstances. One such consent is the ability to sue for a refund. The rules that allow… Continue reading Recovering Taxes Paid for Another Party

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March 11, 2023
A New Beginning for Innocent Spouse Relief

The Taxpayer First Act of 2019 made several changes that impact how tax cases are handled. We are just now seeing some of these changes play out administratively and in court. The recent Bacigalupi v. Commissioner, Docket No. 20480-21 (U.S. Tax Court 2022) is an example of this. It is an innocent spouse case that… Continue reading A New Beginning for Innocent Spouse Relief

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November 6, 2022
Married Filing Separate Spouse Liable for Tax

Marriage presents a number of difficult tax questions. One question is whether both spouses can be held liable when they file separately and one spouse fails to pay their taxes. This is a common marriage tax question that we are asked. One might think that the married filing separate status fully protects the other spouse.… Continue reading Married Filing Separate Spouse Liable for Tax

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August 1, 2022
Divorce Planning for Those With IRS Back Taxes

The IRS often audits tax years where there is some change. This includes mergers, significant asset transfers, deaths or even divorces. The reason why it does this is that these transitions create opportunities for savvy taxpayers or pitfalls for the unwary. These transitions also create motives and introduce new parties to income or assets that… Continue reading Divorce Planning for Those With IRS Back Taxes

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February 12, 2022
Is a Divorce a Divorce for Tax Purposes?

Each state has its own laws. This includes laws that say how one gets married and how one gets divorced. State laws provide a method for accomplishing both acts. The laws of foreign countries usually have similar laws and processes. Religious bodies and affiliations have similar rules and processes. This raises some interesting questions as… Continue reading Is a Divorce a Divorce for Tax Purposes?

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June 2, 2021
Divorce Payments & Tax Basis in Business

Our Federal income tax laws often build upon the presumption that seemingly adverse parties are actually adverse. Our tax laws do not always account for instances where the parties are actively working in concert to reduce the IRS’s cut. Transfers and payments made in relation to divorce are an example. With our tax laws, it… Continue reading Divorce Payments & Tax Basis in Business

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August 8, 2020