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Author: rose0529 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121180  
Subject: same income taxed twice Date: 11/4/2001 9:49 PM
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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.




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