Tax Smart America® reported today that an important tax court case heard in San Diego California, the United States Tax Court has held that some portion of family support payments are considered to be tax deductible as “alimony” payments.

San Diego, CA (PRWEB) April 24, 2006 -- Tax Smart America® reported today that an important tax court case heard in San Diego California, the United States Tax Court has held that some portion of family support payments are considered to be tax deductible as “alimony” payments. In the case, www.ustaxcourt.gov/InOpHistoric/berryopinion.TCM.WPD.pdf#search='berry%20v.%20commissioner'; [BERRY vs. COMMISSIONER T.C. Memo 2005-91 the United States Tax Court held that some portion of what was defined as family support payments are to be considered tax deductible as “alimony” payments as determined under the facts in this case.
The case will have a significant impact on family support settlements, court orders regarding family support payments, and the fact that many taxpayers may now be able to amend prior year tax returns for this issue and claim refund of overpaid taxes related to deductions that may now be claimed under this decision.

The case began with the taxpayer being represented by Tax Smart America® Corporate Offices in the filing of amended tax returns based upon the analysis that some portion of the support payments appeared to represent “alimony.” The refund claim was denied by IRS, and shortly thereafter, San Diego Tax Attorney, Gary M. Erickson was contacted to move the matter into federal tax court.

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