A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.
The Tax Court held that an individual wasn’t entitled to deduct as alimony a lump sum payment to his former wife made under a mediation agreement, finding that under Florida contract law the obligation to make the payment would not have terminated on either party’s death and therefore did not meet the requirement of section 71(b)(1)(D).
JOHN D. NYE AND ROSE M. NYE,
COMMISSIONER OF INTERNAL REVENUE,