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Tax Expert and Advisor Barry G. Fowler, EA, Talks About The Impact The 2017 Tax Overhaul Will Have On Divorce Settlements Starting In The 2019 Tax Season

Barry G. Fowler, EA, leading expert in tax resolution issues and CEO of Taxation Solutions reviews how the 2017 Tax Overhaul is going to adversely affect divorce proceedings this year and in years to come.

Houston, TX – May 23, 2019 – Barry G. Fowler, CEO of Taxation Solutions, posted a new article on the company website entitled “Divorce And Taxes Just Got Uglier,” in which Mr. Fowler’s last words are, “Just when you thought divorce couldn’t get any uglier…”

Fowler writes, “Divorce is typically messy, painful and downright ugly.” “Taxes,” he says, “are no day at the beach either. And, if you get divorced this year you can count on both being uglier than ever come next tax season for anyone paying alimony.” “That’s right,” says Fowler, “if you were divorced in 2018, you’re fine. But, if you postponed your divorce or couldn’t go through with it before and now you are, you may want to discuss the tax repercussions with a professional first.”

According to Fowler, “Here’s how divorce gets messier. There’s been a new agreement between IRS management and TIGTA. They agreed to “program and use filters to select tax returns for audit to determine if taxpayers are eligible for the deduction for alimony payments, and to revise Form 1040, Schedule 1 to request the date of divorce or separation agreements.”

As Fowler points out, “You have the 2017 tax overhaul to thank for this one. The new tax law eliminated or sharply limited various traditional tax deductions, including the alimony deduction.” He elaborates, “Only taxpayers who make payments under divorce or separation agreements entered into prior to Jan. 1, 2019, can continue to claim a deduction for payments made. And those divorced individuals who receive alimony pursuant to these agreements are supposed to continue to report the payments as income on their tax return.”

“So here’s the tricky part,” says Fowler, adding, “This law may discourage many payers from agreeing to pay alimony, making a messier, complicated divorce more likely. According to some divorce lawyers, they now fear the fallout could impact child support payments, which are often calculated in tandem with alimony settlements.”

Allowing the deduction often saved up to about 50 percent in taxes for top earners in high-tax

The entire article can be read at https://www.taxationsolutions.net/divorce-and-taxes-just-got-uglier/

About Barry G. Fowler, EA

Barry G. Fowler founded Taxation Solutions out of a genuine concern for the IRS issues his clients face, many of whom are self-employed, contract employees, or entrepreneurs. For his contributions to his profession and expertise in tax resolution and financial planning, Fowler has been featured as one of America’s Trendsetters on CBS and Yahoo, and as a Premier Expert in Inc. Magazine. He has been instrumental in helping hundreds of people resolve complex tax issues with the IRS.

Fowler is licensed to represent taxpayers before the Internal Revenue Service, and is a longstanding member of several tax industry professional organizations: NAEA, NATP, TSEA, ASTPS.

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