What This Letter Means
Letter 3541 is part of a family of IRS correspondence audit letters about an alimony deduction you claimed. The IRS calls the person who claims the deduction the "payer."
- Letter 3541-E is the first contact. It asks for records supporting the deduction, including proof of payment and a copy of the instrument that required the payments. It also asks you to identify who received the alimony.
- Letter 3541 or 3541-D comes with Form 4549, an examination report showing the changes the IRS proposes.
What to Send
- The divorce decree, separate maintenance decree, or written separation agreement, with all amendments.
- Proof of each payment: cancelled checks showing who received the money, the amount, and the date; both sides of money orders; or direct deposit records naming the recipient.
- Court receipts or statements from the state or county agency the payments went through, or pay statements showing the recipient or the court docket number.
- If the instrument required payments to third parties, such as a mortgage or insurance, records proving those payments.
Rules That Trip People Up
- Payments must be made under a divorce or separation instrument.
- For agreements executed after December 31, 2018, alimony isn't deductible. The same is true for older agreements modified after 2018 to adopt that rule.
- Child support and property settlements are not alimony.
- Your return must show the recipient's correct Social Security number.
If You Agree or Disagree
If you agree with the report, sign it or pay the full amount. If you send documents, the IRS reviews them and may close the case with no change if they show your return was substantially correct. If you disagree with the determination, you can ask for Appeals review.
Don't ignore the letter. An unanswered exam moves toward a statutory notice of deficiency. Respond by the date on the letter, keep copies, and use certified mail.
If the IRS is questioning your alimony deduction, call us at (813) 229-7100.