Case: Divorce settlement stating no alimony fails alimony checks (TC Summ.) (IRC §71)
May 16, 2022 at 5:00 am
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If the divorce settlement expressly stated that neither party would pay the other alimony, the husband’s alimony deduction was denied, the US tax court ruled in a non-precedential summary opinion. Taxpayers divorced and their agreement specifically states that “neither party may pay alimony to the other party.” The agreement also included a clause stipulating that the taxpayer would pay his ex-wife $50,000 to help her with relocations and legal fees. The taxpayer paid the amounts and claimed a maintenance deduction under IRC §215 on his return. The IRS denied the deduction. A divorce settlement that specifically states that no alimony…
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