The income tax effect of cash payments made by one spouse in a divorce proceeding to the other is determined under section 71 of the Internal Revenue Code.
Undifferentiated Support Orders: Can They Be Taxable Alimony?
The income tax effect of cash payments made by one spouse in a divorce proceeding to the other is determined under section 71 of the Internal Revenue Code. To be taxable to the recipient of the payments as alimony, and deductible by the payor, the payments must meet the four requirements of section 71(b)(1). Of these requirements, the one that has caused the most difficulty is found in section 71(b)(1)(D): there can be "no liability to make any such payment after the death of the payee spouse ... " nor can there be any liability to make a substitute payment.
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Thomas R. White, IIIThis premium content is locked for LawJournalNewsletters subscribers only
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