Friday, May 16, 2014
A Press Release from theTreasury Inspector General for Tax Administration:
A report from the Treasury Inspector General for Tax Administration (TIGTA) publicly released today identifies a $2.3 billion gap between the amount of alimony deductions claimed by taxpayers in 2010 and corresponding income reported.
Individuals who pay alimony can deduct the amount paid from income on their tax return to reduce the amount of tax an individual must pay. Alimony recipients must, in turn, claim the amount received as income on their tax return. An alimony income reporting discrepancy occurs either when individuals claim deductions for alimony which they did not pay or individuals do not report alimony income they received.
TIGTA initiated this audit to evaluate whether there is an alimony reporting gap and to assess controls the Internal Revenue Service (IRS) has in place to promote alimony reporting compliance.
Read more here.
Hat Tip: TaxProf Blog