Source: https://www.bragertaxlaw.com/innocent-spouse-urban-legend-or-viable-option.html
Timestamp: 2018-04-25 19:55:36
Document Index: 17311419

Matched Legal Cases: ['§ 6402', '§ 6015', '§ 6015', '§ 6015', '§ 6015', '§6015', '§ 6330']

Collection activity means a CDP levy notice; an offset of an overpayment of the requesting spouse against a liability under I.R.C.[1] § 6402; the filing of a suit by the United States against the requesting spouse for the collection of the joint tax liability; or the filing of a claim by the United States in a court proceeding in which the requesting spouse is a party or which involves property of the requesting spouse. Collection activity does not include a notice of deficiency; the filing of a Notice of Federal Tax Lien; or a demand for payment of tax. The term "property of the requesting spouse," means property in which the requesting spouse has an ownership interest (other than solely through the operation of community property laws), including property owned jointly with the non-requesting spouse. Treas. Reg. Section 1.6015-5(b)(2)
In a petition filed with the Tax Court, the requesting spouse must establish that denial of relief was an abuse of discretion. This means that the petitioner must show that the IRS acted arbitrarily, capriciously, or without a sound basis in fact. Jonson v. Comm'r., 118 T.C. 106 (2002), aff'd, 353 F.3d 1181 (10th Cir. 2003). Nevertheless, the determination is made de novo by the Tax Court. Ewing v. Comm'r, 122 T.C. 32, 42 (2004), reversed on other issues, 439 F.3d 1009 (9th Cir. 2006).
In a series of cases each involving slightly different procedural circumstances the Tax Court held that it had jurisdiction to review the IRS' determination that a taxpayer was not entitled to equitable relief. Fernandez v. Commissioner, 114 T.C. 324 (2000), nonacq. AOD 2004-05 reversing AOD 2000-06. (Tax Court has jurisdiction under § 6015(e) in a "stand-alone" proceeding to review a denial of equitable relief, if an election was also made under § 6015(b) or (c)); Ewing v. Commissioner, 118 T.C. 494 (2002) rev'd. 439 F.3rd 1009 (9th Cir. 2006). Tax Court has jurisdiction in a § 6015(e) stand-alone case to review a denial of relief where only equitable relief was elected.) Indeed in Chief Counsel Notice N(35)000-338, the IRS had taken the position that not only the Tax Court, but the District Courts and the Court of Federal Claims have jurisdiction to hear stand-alone claims for relief under § 6015(f). Recently, however, the IRS has reversed its position, and after two reversals in the Appellate Courts, the Tax Court has reversed itself, and will no longer hear §6015(f) cases where there has been no deficiency asserted. Billings v. Commissioner. 127 TC No. 2 (2006). It will however, hear requests for equitable relief if a deficiency was asserted. It can also hear requests for equitable relief if it is raised as an issue in a collection due process hearing subject to §§ 6330 and/or 6320. Id.
Innocent Spouse Relief Flowchart