How Much Of Alimony Tax Gap Is From Gaming The System?
Of the 266,190 returns that had discrepancies, IRS examined 10,870. That is 4% so I guess you could say, you are sharply increasing your chance of being audited by deducting alimony your ex-spouse does not pick up as income. On the other hand, you and your ex collectively have a 96% chance of getting away with something that is in your face blatantly wrong even though you are, in effect, ratting yourselves out.
Tax Court Petitions – UPS v USPS – One Letter – Big Difference
A timely mailed petition may be treated as though it were timely filed. Sec. 7502(a). Thus, if a petition is received by the Court after the expiration of the 90-day period, it is nevertheless deemed to be timely filed if the date of the U.S. Postal Service postmark stamped on the envelope in which the petition was mailed is within the time prescribed for filing. Id.; sec. 301.7502-1, Proced. & Admin. Regs.
Petitioner did not use the U.S. Postal Service to mail his petition to the Court
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.