Professional Tax Research Solutions from the Founder of Kleinrock. tax and accounting research
Parker Tax Pro Library
Accounting News Tax Analysts professional tax research software Like us on Facebook Follow us on Twitter View our profile on LinkedIn Find us on Pinterest
federal tax research
Professional Tax Software
tax and accounting
Tax Research Articles Tax Research Parker's Tax Research Articles Accounting Research CPA Client Letters Tax Research Software Client Testimonials Tax Research Software tax research

Accounting Software for Accountants, CPA, Bookeepers, and Enrolled Agents

CPA Tax Software



Taxpayer Can't Deduct Back-Alimony Paid Pursuant to State Court's Final Judgement.

(Parker Tax Publishing May 20, 2015)

The Tax Court held that because a taxpayer's spousal support payments were made pursuant to a state court's final money judgement, his liability for the payments would persist after his death and therefore could not be considered alimony. Iglicki v. Comm'r, T.C. Memo. 2015-80.


David Iglicki and his wife Christie separated in 1999. Their separation agreement required Iglicki to pay $735 per month in child support to his former wife, but did not require him to pay any alimony to her unless he defaulted on his obligations under the agreement. If he defaulted, he would become obligated to pay $1,000 per month in alimony.

Iglicki moved to Colorado in 2002. Shortly thereafter, he defaulted on his obligations under the separation agreement and began incurring alimony obligations. In 2003, Iglicki's former wife filed suit in the District Court of El Paso County, Colorado, to enforce the separation agreement and divorce decree. In 2008, she filed a verified entry of judgment with the El Paso district court, declaring that Iglicki owed her $22,838 in child support arrears and a total of $64,156 in spousal support arrears.

In 2010, Iglicki made $50,606 in payments to his former wife. The payments, which were garnished from his wages, included $11,256 for child support. Iglicki claimed a deduction for $39,350 of alimony payments on his 2010 return, but his ex-wife reported only $13,441 of alimony income on her 2010 return. In 2012, the IRS determined a deficiency of $10,479 and assessed an accuracy-related penalty.


Code Sec. 215(a) allows a taxpayer a deduction for alimony or separate maintenance payments paid during the tax year. Code Sec. 71(b)(1) sets forth a four-pronged test to determine if a payment is alimony:

(1) the payment must be received pursuant to a divorce instrument;

(2) the divorce instrument must not designate the payment as one that is not includible in income;

(3) the payor and payee must not still live together; and

(4) there must not be a liability to continue making payments after the payor's death. All four of the requirements must be met for the payment to be considered deductible alimony.

The IRS conceded that Iglicki's payments to his ex-wife met the second and third requirements of Code Sec. 71(b)(1), but argued that the payments did not meet the first and fourth requirements, and thus could not be considered alimony payments.

The Tax Court noted Colorado law treats payments made to satisfy future alimony obligations differently from payments made to satisfy alimony arrears. Future alimony obligations terminate at the death of either spouse unless otherwise agreed in writing or expressly provided in the decree. By contrast, an order enforcing alimony arrears becomes a final money judgment, which is not affected by the death of either the payor or the payee.

The court found that since the verified entry of judgment was issued to assist the ex-wife in collecting past due but unpaid alimony, it was treated as a final money judgment against Iglicki. As such, under Colorado law, Iglicki's liability would not be affected by the death of either himself or his former wife.

Because Iglicki's liability was based on a judgement under which he would remain liable for the unpaid alimony arrears after his death, the Tax Court determined that the payments failed the fourth requirement under Code Sec. 71(b) and could not be considered alimony. The court thus held Iglicki was not entitled to an alimony deduction under Code Sec. 215(a) for the payments, sustaining the IRS's deficiency determination and imposing an accuracy-related penalty.

For a discussion of taxation of alimony and separate maintenance payments, see Parker Tax ¶ 14,220. (Staff Editor Parker Tax Publishing)

Disclaimer: This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer. The information contained herein is general in nature and based on authorities that are subject to change. Parker Tax Publishing guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. Parker Tax Publishing assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein.

Parker Tax Pro Library - An Affordable Professional Tax Research Solution.

Professional tax research

We hope you find our professional tax research articles comprehensive and informative. Parker Tax Pro Library gives you unlimited online access all of our past Biweekly Tax Bulletins, 22 volumes of expert analysis, 250 Client Letters, Bob Jennings Practice Aids, time saving election statements and our comprehensive, fully updated primary source library.

Parker Tax Research

Try Our Easy, Powerful Search Engine

A Professional Tax Research Solution that gives you instant access to 22 volumes of expert analysis and 185,000 authoritative source documents. But having access won’t help if you can’t quickly and easily find the materials that answer your questions. That’s where Parker’s search engine – and it’s uncanny knack for finding the right documents – comes into play

Things that take half a dozen steps in other products take two steps in ours. Search results come up instantly and browsing them is a cinch. So is linking from Parker’s analysis to practice aids and cited primary source documents. Parker’s powerful, user-friendly search engine ensures that you quickly find what you need every time you visit Our Tax Research Library.

Parker Tax Research Library

Dear Tax Professional,

My name is James Levey, and a few years back I founded a company named Kleinrock Publishing. I started Kleinrock out of frustration with the prohibitively high prices and difficult search engines of BNA, CCH, and RIA tax research products ... kind of reminiscent of the situation practitioners face today.

Now that Kleinrock has disappeared into CCH, prices are soaring again and ease-of-use has fallen by the wayside. The needs of smaller firms and sole practitioners are simply not being met.

To address the problem, I’ve partnered with a group of highly talented tax writers to create Parker Tax Publishing ... a company dedicated to the idea that comprehensive, authoritative tax information service can be both easy-to-use and highly affordable.

Our product, the Parker Tax Pro Library, is breathtaking in its scope. Check out the contents listing to the left to get a sense of all the valuable material you'll have access to when you subscribe.

Or better yet, take a minute to sign yourself up for a free trial, so you can experience first-hand just how easy it is to get results with the Pro Library!


James Levey

Parker Tax Pro Library - An Affordable Professional Tax Research Solution.

    ®2012-2018 Parker Tax Publishing. Use of content subject to Website Terms and Conditions.

IRS Codes and Regs
Tax Court Cases IRS guidance