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IRS report- $2.3 Billion in alimony taxes not paid
Posted on 5/15/14 at 2:49 pm
Posted on 5/15/14 at 2:49 pm
A new report from the inspector general for the Department of Treasury found that in tax year 2010 the alimony taxpayers claimed they paid (which qualifies as a deductible expense) was $2.3 billion more than the recipients of alimony reported they received (money recipients are supposed to list as taxable income).
Billion hear a billion there so or later it will be real money
Billion hear a billion there so or later it will be real money
7
Posted on 5/15/14 at 2:55 pm to TigerintheNO
Maybe the IRS can spare a little time and staff from the harassment of right-wingers to check this out. It would be almost like they were doing the job we pay them for.
Posted on 5/15/14 at 2:58 pm to FightinTigersDammit
Republicans get divorced too, so this could be a win win if they research enough.
Posted on 5/15/14 at 3:10 pm to TigerintheNO
Wages shouldn't be taxed once, much less twice.
Wages is not income.
Wages is not income.
Posted on 5/15/14 at 3:14 pm to TigerintheNO
#warondawomenz
Posted on 5/15/14 at 3:27 pm to TigerintheNO
quote:
A new report from the inspector general for the Department of Treasury found that in tax year 2010 the alimony taxpayers claimed they paid (which qualifies as a deductible expense) was $2.3 billion more than the recipients of alimony reported they received (money recipients are supposed to list as taxable income).
I would think that would be easy enough for the IRS to check.
OTOH, the other day I had the misfortune to meet a woman in a Lexus with car tags ALIMONY who seemed hellbent to drive errbody else off the road. Cheers to the guy who was able to separate from that psycho bitch.
Posted on 5/15/14 at 3:29 pm to TigerintheNO
The biggest problem with alimony, and it will continue to be a problem, is it is one of the only income sources that is reported by the recipient on the honor system. There payee sends no form to the IRS so the IRS has no idea how much the recipient is supposed to report until the payee files his/her return.
Posted on 5/15/14 at 3:35 pm to TigerintheNO
There shouldn't bee too much problem reconciling the discrepancies. The taxpayer claiming a deduction for alimony paid must report the SSN of the taxpayer receiving the alimony. It shouldn't be too difficult for the IRS to locate the recipients' tax returns and determine whether the alimony received is reported as income.
The problem comes when the income isn't reported. The IRS has to go to the taxpayer who paid the alimony and get proof of payment before going after the recipient for failing to report the income.
The problem comes when the income isn't reported. The IRS has to go to the taxpayer who paid the alimony and get proof of payment before going after the recipient for failing to report the income.
Posted on 5/15/14 at 3:39 pm to Poodlebrain
It'll take the IRS time, but they can easily match this up. There's only two things that could have happened XXX-XX-XXXX paid money to ZZZ-ZZ-ZZZZ, but ZZZ-ZZ-ZZZZ did not claim it or XXX-XX-XXXX did not pay the money they claimed. In either case ZZZ-ZZ-ZZZZ, possibly XXX-XX-XXX, will be writting an additional check.
Posted on 5/15/14 at 3:52 pm to GreenTrout
Imma just going to guess the person paying the alimony reported it correctly and the recipient who never had a clue about the family finances failed to report the income.
Posted on 5/15/14 at 3:57 pm to TigerintheNO
You don't get a tax break for paying alimony. The ex-spouse receiving the alimony does not report the alimony as income.
Posted on 5/15/14 at 4:00 pm to dante
quote:
The ex-spouse receiving the alimony does not report the alimony as income.
Why not? If I am a source of your income, wouldn't you have to report that?
Not arguing, just asking.
Posted on 5/15/14 at 4:00 pm to dante
Incorrect. Alimony payments are deductible and taxable as income.
This post was edited on 5/15/14 at 4:02 pm
Posted on 5/15/14 at 4:02 pm to patnuh
quote:I miss read alimony, thinking child support. Disregard my previous post.
Why not? If I am a source of your income, wouldn't you have to report that?
Not arguing, just asking.
Posted on 5/15/14 at 4:04 pm to Tiger n Miami AU83
Btw, I suspect the irs gets this fixed and goes after it eventually. The problem is the irs is understaffed and this is not an easy one to go after.
They will have to find a way to prove payment was made by the paying ex. They don't have a way to do that really.
They will have to find a way to prove payment was made by the paying ex. They don't have a way to do that really.
Posted on 5/15/14 at 4:08 pm to FightinTigersDammit
Doesn't the payer have to list the payee and the payee's SSN on their tax return. With the payee's SSN the programming should be simple.
Posted on 5/15/14 at 4:10 pm to mauser
How are they going to prove who is lying without auditing both taxpayers? They don't have nearly the manpower to do that.
Posted on 5/15/14 at 4:12 pm to dante
quote:
You don't get a tax break for paying alimony.
Oh hell yeah you do get to deduct it. The recipient has to pay tax on it. It's one of the subtle pleasures of a divorce. If a recipient of alimony doesn't declare the payments as income, the IRS will send a letter in two years.
I'm surprised this is a news story. If we had a non partisan IRS, it would only be a simple accounting problem. Maybe the Lois Lerners in the IRS want it to be a war on wymyms situation.
Posted on 5/15/14 at 4:15 pm to Tiger n Miami AU83
quote:
How are they going to prove who is lying without auditing both taxpayers? They don't have nearly the manpower to do that.
Posted on 5/15/14 at 4:15 pm to Tiger n Miami AU83
quote:Some states are pretty good at monitoring payments for child support. When they do, they ask for proof of all payments by the responsible party, and they track alimony and child support for compliance with the court orders pursuant to the divorce. I've had to use the reports provided for those purposes as proof of alimony paid more than once for the same client. His ex-wife tries to claim the payments were child support, but a New York state agency says otherwise. We go through the same song and dance routine every year. I would hope the IRS is imposing substantial accuracy related penalties on the ex-wife, but there is no way of knowing.
They will have to find a way to prove payment was made by the paying ex. They don't have a way to do that really
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