Business Law Case Brief Sample

On Wendy’s Intake and Interview sheet, she answered “Unsure” to the question, “Can anyone claim you or your spouse on their tax return?”

The investigation brought about the dissolution of the firm. Mr. Lomanno became fearful that this investigation would expose his embezzlement scheme. He decided to seek legal advice and he contacted a criminal attorney. The matter was taken up with the office of the US Attorney. He confessed for all his wrong doings and was offered a plea bargain which had a condition that he file his returns for the year 1986, 1987, and 1988 which had not being filed. The income from embezzlement was reported as “other income” and was in tunes of $45,007 for 1987 and $15,005 for 1988. Because he did not want the petitioner to know about this, he prepared the returns alone and tried to hand them in unsigned. The officers saw the unsigned part and wanted it signed. He went ahead and forged the signature of the petitioner. The petitioner came to learn of her husband’s embezzlement in the year 1990 through a probation officer and through a letter received from IRS revenue agent. The couple divorced in 1991. Mrs. Lomanno petitioned to be exempted from the tax return payments. In this case, the petitioner filed a subject motion for attorney’s fees and litigation costs.

The joint liability could cause issues for both parties if there were more tax liabilities or an audit was found in the IRS’s favor. When a joint return is filed personal exemptions are allowed for both spouses and exemptions for dependents can be claimed for all dependents.

One is “Baxter v. Baxter” in 1998, when a man’s wife left her for a friend who was financially well-off, with “an income of over $100,000 a year” (CNS News), yet still demanded an alimony from her husband that was slightly less than $1,000 per month. Another is “Heilman v. Heilman” from 1992, when a states appeals court reversed the denial of an adulterous wife’s request for alimony from her former husband and rejected her former spouse’s claim that emotional trauma and devastation should qualify as exemptions from having to pay a permanent alimony to adulterous spouse. In both cases, preexisting financial stability and emotional burdens do not ease or erase the conditions for forced alimony pay under Florida state law. These are motives that have fueled the fire of the current Alimony Reform movement in Florida. Many claim that alimony hurts lower-income families, who can’t afford to pay high alimony fees every month for the rest of their lives, or families who have gone through divisive and devastating trials thanks to separation or divorce, especially in cases where the separation or divorce was caused by adultery or

Married couples often file joint tax returns as the IRS extends certain tax breaks to

In general, according to IRS, there are no tax deductions that might ease the pain of divorce. However, even though it has no sympathy for the legal fees incurred by a couple who split, a husband and wife might be able to salvage a deduction for the portion of expenses in some circumstances such as tax advice in connection with a divorce, as well as legal fees to obtain taxable alimony. This research paper is going to explore these questions more deeply by examining the provided situation of Bill and Hillary.

The plan worked fine until the business owner, who legitimately reported the insurance money on his tax return, tried to deduct the $10,000 that he paid the arsonist as a "consulting fee." The deduction was disallowed (the IRS accepts income from illegal activities but won't accept deductions for illegal operations), and the businessman received a jail sentence.[5]

Specific Issues: Is the check that Phyllis received from XYZ on May 8 taxable to her?

No fault divorce has allowed women and men (and more recently, same sex couples) the option to end their marriage simply because they no longer want to be married. However, this presents new legal questions which need to be answered. The courts must determine alimony, or spousal support. After a marriage, one spouse might need to support the other based on length of the marriage, difference in incomes or lost earning potential. However, determining a fair way to allocate alimony is an important issues to ensure both partners come out of the marriage on equal footing. Establishing new guidelines for alimony is critical to ensuring that there is equality at the end of a marriage.

The taxpayer who signed the return can establish that in signing the return, (she) did not know or have any reason to know of the understated income

On April 15, 2005, Peggy Schmeiler, my father-in-law’s wife called the IRS Whistleblowers Hotline and informed them that we were living too well for our income. She followed the phone call by mailing them a Claim for Award

Alimony is temporary Income money that is paid to the ex-spouse to support after the divorce. The hardest part is determining whether the ex-spouse receives alimony which is a very emotional issue in divorce. Alimony involves all around financial discussions usually a spouse doesn’t have a degree, been out of the work place environment raising children, has a hard time finding work or doesn’t make not near what the other spouse makes will request to receive alimony. The amount awarded for alimony unlike child support is based off of the age, physical condition of the spouse, their emotional state they are in, and financial circumstance of the former spouses; the spouse may need time for education or training to become self-sufficient; the standard of living the couple had standard during the marriage; The length and time of the marriage had lasted; and also the capability of the payer spouse to support the ex-spouse and still support themselves. People who know and understand the alimony laws knows that there are tax advantages

As we have learned in Scenario # 4, Jeff and Elena file as MFJ, combining their income and forms 1095-A. Since Elena got married during the year she wants to claim the “Alternative Calculation” on Form 8962 for months prior to the marriage. She doesn’t want to pay back the $138 calculated in Scenario #4.

when we find out whether it is child support or alimony. It is very easy to get

John Paul (“Paul”) set up a church, Our Lord’s church of Devine Exemption (OLCDE), to prove how ridiculously easy it is to abuse the tax system. R. at 3. Paul’s church met the requirement of I.R.C. § 501 (c)(3). R. at 5. During the tax year of 2012, Paul received a parsonage allowance from the church in the amount of $2,400,000. R. at 6. Paul filed a tax return for the year 2012 and excluded the amount received as parsonage allowance. R. at 6. Paul relied on the I.R.C. § 107(2) which allows the exclusion of housing allowance paid to ministers of the gospel for their services. R at 6. The Internal Revenue Service (“IRS”) rejected Paul’s claim. R. at 6. The IRS determined that the housing allowance was not compensation for services provide