Message Font: Serif | Sans-Serif
No. of Recommendations: 0
In a recent audit of my 1999 return, the IRS said that I have to pay the federal tax on payments my husband was supposed to allocate to me from his municipal pension until the QDRO became effective.

My CPA for that tax year, told me that it was not taxable to me because he paid it out of his personal account and he would get the 1099R for the the pension and would incur the tax liability. The correct thing for my ex to do would be to bill me for the federal tax. (I got a huge tax refund that year because I had extra federal tax withheld assuming I would have to pay the tax on the pension income.)

I showed the IRS examiner the court documents where it clearly indicated what the payments were and the amount. I said my ex had already paid the federal tax on the money. They said he didn't pay tax on it beccause he claimed it as alimony! I showed her in the court papers where it specifically said that I was denied alimony and child support.

None of this has held any water with the IRS, even after my CPA and my divorce attorney got involved. They have advised me to pay the tax because it will be a costly long shot to appeal, which I will probably lose. Back taxes and interest are $2,500.

The IRS won't tell me if they have disallowed his "alimony" deduction for that year, in which case, my ex will have to pay back taxes, also on the same income.

Any suggestions for this predicament? Thank you.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.