Generally for tax purposes, alimony is:
A) deductible on the tax return of the payor.
B) deductible on the tax form of the payee.
C) taxable to neither the payor or the payee.
D) taxable to both the payor and the payee.
Question 2
Chelsea is a paralegal who works for Attorney McCarthy. Recently, Ken contacted the firm and Attorney McCarthy assigned Chelsea to interview him and gather information about his concerns. Ken has been married for only four years but seems to be particularly concerned about the possibility that he might be ordered to pay alimony. Which of the following tasks can Chelsea perform without violating any ethical principles?
A) She can tell him that he can always declare bankruptcy and then not have to pay any alimony.
B) She can tell him that she has researched the laws governing alimony and reassure him that courts don't grant alimony in marriages of such short duration.
C) She can give him a copy of the office's Frequently Asked Questions about Alimony sheet so he can learn more about alimony and perhaps find answers to some of his questions.
D) Chelsea should not have interviewed Kenny in the first place because her supervisor was not present.
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