By Elizabeth J. Billies | Esquire
According to a recent article by Insight Financial Strategists, those claiming payment or receipt of alimony/spousal support are at a higher risk for audit by the IRS. The agency is increasing it is auditing filters and developing additional strategies to catch reporting discrepancies between alimony payments that are claimed vs. alimony payments that are received.
If you are claiming a deduction for support payments or declaring receipt of support income, it is crucial that accurate numbers are reported. This may require speaking with your ex-spouse to make sure the amount paid vs. received match and that you both understand what is considered alimony/spousal support and what is not. Although working with your ex may not be something you look forward to, it may be more favorable then speaking to an IRS auditor. To read the Insight Financial Strategists article, click here.