Source: https://procedurallytaxing.com/the-eight-circuit-gives-both-sides-a-hard-time-on-what-is-a-separate-return-for-section-6013b-purposes/
Timestamp: 2019-04-20 18:10:07+00:00

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The 8th Circuit will rule against the Ibrahim appellants–but for reasons different than the reasons the Tax Court and the DOJ articulated.
Attorney DiPietro essentially argues that, for § 6013 purposes, Mr. Ibrahim filed no return at all. He argues that only an MFS return is a “separate return” and, thus, he concludes that Mr. Ibrahim’s filed HOH return is not a “separate return.” This argument actually wins the battle…but it loses the war.
If Mr. Ibrahim did not file a “separate return,” then he filed no return recognized by § 6013. So far, so good. Because Mr. Ibrahim did not file a separate return, he and his wife are free to file a joint return. But now the tide turns.
Under § 6013(b)(2)(B), no one may elect an MFJ status if the Commissioner issues a valid NOD to either spouse and if the noticed spouse timely petitions the Tax Court. Importantly, the Commissioner may issue an NOD even when a taxpayer files no return. In Ibrahim, the Commissioner issued a valid NOD and Mr. Ibrahim filed a timely Tax Court petition. And those acts signify Mr. Ibrahim’s legal demise.
It is immaterial whether Mr. Ibrahim’s HOH return is, or is not, a “separate return” under § 6013. He cannot prevail because he, whether as a “separate return” filer or as a “separate return” non-filer, falls victim to § 6013(b)(2)(B). I predict the 8th Circuit will so hold.
The issue you raise has already been litigated, and the IRS no longer is willing to make that argument.
But, then, the in Milsap v. Commissioner, 91 T.C. 926 (1988), an en banc Tax Court overruled Smallridge, holding that a taxpayer in Tax Court could elect to file MFJ, despite the IRS’ having prepared an MFS substitute for return. The issue has not been litigated further because the IRS acquiesced in Milsap’s holding in 1991 AOD LEXIS 32.

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