6 Pages Posted: 27 Dec 2009 Last revised: 7 Jan 2010
Date Written: December 14, 2009
The author concludes that, contrary to the IRS and the Tax Court’s position, a single lump sum payment to a divorced spouse can qualify for alimony treatment in some circumstances subject to the front-loading rules. The author also contends that to conform to the requirement of the alimony provision, a payment of a divorced spouse’s legal or medical expenses under a divorce or separation instrument should qualify for alimony treatment even though those payments usually will not satisfy the literal terms of the statute.
Keywords: alimony, taxation, single lump, front-loading, 71, webb, spouse
JEL Classification: H20, H24
Suggested Citation: Suggested Citation
Kahn, Douglas A., Alimony Treatment for a Single Payment (December 14, 2009). Tax Notes, Vol. 125, 2009; U of Michigan Public Law Working Paper No. 178. Available at SSRN: https://ssrn.com/abstract=1527787