New Jersey Family Law

SPRINGFIELD UNION COUNTY NEW JERSEY DIVORCE MEDIATION LAWYER MEDIATOR

In their New Jersey divorce agreement, the mother was given the right to claim the tax exemption for the parties' unemancipated daughter for even-numbered years. Here, the New Jersey divorce judge's order granting her the exemption for 2006 and 2008 is affirmed, since she fully complied with the agreement and the father could not prove otherwise.    Rosen v. Rosen, New Jersey App. Div., December 11, 2009

GLEN RIDGE ESSEX COUNTY NEW JERSEY DIVORCE TAX FRAUD LAWYER

A recent change in federal law makes New Jersey divorce tax fraud even more dangerous. The law used to provide a bounty of 10% to tax snitches. Now, if $2 million or more is at stake, the IRS is authorized to pay up to a 30% reward.   Forbes, December 10, 2009

EMERSON BERGEN COUNTY NEW JERSEY DIVORCE MEDIATION LAWYER

What does "non-taxable" alimony mean? After the parties' New Jersey divorce, the ex-husband claimed (a) the non-taxable alimony left him near-bankrupt because of tax deficiencies assessed against him, (b) changed circumstances sufficient to adjust the mode of operation of the agreement; and (c) the Agreement is either conclusively interpretable or it is ambiguous, thereby entitling him to a plenary hearing. All of these arguments were rejected by the New Jersey divorce judge, who is now affirmed on appeal.   Droussiotis v. Droussiotis, New Jersey App. Div., October 1, 2009

　

　

DEMAREST BERGEN COUNTY NEW JERSEY DIVORCE TAX MEDIATION

The wife filed her own separate federal and New Jersey income tax returns for 2005 and 2006. At the time of the New Jersey judgment of divorce in 2008, the parties had not yet filed their 2007 tax returns. The New Jersey divorce judge ordered the parties to file amended joint tax returns for 2005 and 2006, and joint returns for 2007. These rulings were erroneous and are reversed, especially in view of the husband's prior history of unreported/underreported income. Accordingly, it was inequitable to compel the filing of joint income tax returns.    Hreha-Coloccia v. Coloccia, New Jersey App. Div., September 2, 2009

HACKENSACK DIVORCE TAX EXEMPTION BERGEN COUNTY NEW JERSEY MEDIATION LAWYER

The New Jersey divorce judge was correct in denying the motion of the father to take advantage of the 5 year old child's personal tax exemption. Their New Jersey divorce judgment provided that the issue was unresolved. Thus, the father was deemed to have abandoned the issue.    Canavan v. Canavan, New Jersey App. Div., June 30, 2009

ALPINE BERGEN COUNTY NEW JERSEY DIVORCE MEDIATION LAWYER

Relevant to all New Jersey divorce cases, the New Jersey Supreme Court has just approved new income tax withholding tables for use in implementing the New Jersey Child Support Guidelines. The update was necessitated by the federal economic stimulus legislation, the American Recovery and Reinvestment Act of 2009 (ARRA). ARRA amended the federal tax withholding tables effective April 1, 2009, resulting in increased net pay for certain wage earners, due to decreased withholding.      May 27, 2009

WEST PATERSON PASSAIC COUNTY NEW JERSEY DIVORCE TAX FRAUD

 The New Jersey divorce judge turned the husband in to the IRS, the New Jersey Division of Taxation, the Sussex County Prosecutor and the Social Security Administration. The judge found "inconsistencies" between the amounts that the husband reported on the tax returns and his history of earnings. Also, he used two social security numbers and he collected unemployment benefits while he was employed.    Lucci v. Lucci, New Jersey App. Div., February 3, 2009

MONTCLAIR NEW JERSEY DIVORCE LAWYER TAXATION

The Internal Revenue Service has issued final regulations relating to the child dependency exemption, effective as of July 2, 2008. When a child of divorced or separated parents lives with both of them during the year, the right to claim the dependency exemption may be released by the "custodial parent". The custodial parent is defined as the parent with whom the child resides for the longest period of time during the year. Internal Revenue Code § 152(c)(4)(B), September 25, 2008

BERKELEY HEIGHTS UNION COUNTY NEW JERSEY DIVORCE ATTORNEY

This week's edition of the New Jersey Law Journal is carrying an article by Charles C. Abut, Esq., titled Blinders Won't Hide The Elephant in the Room. The article discusses the ramifications of the Sheridan case, which requires judges hearing New Jersey divorce cases to report tax fraud to the appropriate authorities and suggests that the prevailing philosophy of "don't ask-don't tell" is not likely to carry the day.        New Jersey Law Journal, July 16, 2008

JERSEY CITY HUDSON COUNTY DIVORCE MEDIATION TAX INNOCENT SPOUSE

In 2000, taxpayer requested equitable relief under IRC Sec. 6015(f) from joint and several liability for her 1997 joint tax underpayment, which the IRS denied. In 2007, taxpayer filed a second request for equitable relief for the same underpayment, providing more detailed factual allegations and alleging that her ex-husband and his business associate had been convicted of criminal securities fraud, which the IRS also denied. The Tax Court held that the second claim for relief was essentially duplicative of the first claim, and was not a qualifying request for relief under Reg. 1.6015-1(h)(5) . In so holding, the court noted that the second request "presented essentially the same factual basis and ground for relief as the first claim for relief and is best characterized as seeking reconsideration of her first request for relief, with reiterations of those claims.    Judith Barnes , 130 TC No. 14 (Tax Ct.), June 16, 2008