Spouses can challenge innocent spouse relief petitions.The Tax Court, in a case of first impression, has held that nonpetitioning or former spouses have the right to challenge innocent spouse relief petitions whenever their spouses or former spouses file them. The court directed the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. to notify nonpetitioning and former spouses of their right to intervene in all innocent spouse relief cases. The IRS recently acquiesced to this ruling (Chief Counsel Notice N(35) 000173,10-17-00). In King v. Commissioner (115 TC no. 8 (2000)), the taxpayer and her husband filed a joint tax return in 1993. Two years later, they divorced. The IRS determined that a deficiency existed for the 1993 return and issued identical notices of deficiency to the taxpayer and her former husband. The taxpayer moved for innocent spouse relief from joint liability and filed a petition before the Tax Court. When her former husband learned of the innocent spouse petition, he sought to challenge it and moved to intervene in the case. In its decision, the Tax Court stated that the IRS Restructuring and Reform Act of 1998 expanded the innocent spouse protections. But the court also found that this case was based on a notice of deficiency, and therefore innocent spouse relief, in this situation, could be used as an affirmative defense A new fact or set of facts that operates to defeat a claim even if the facts supporting that claim are true. A plaintiff sets forth a claim in a civil action by making statements in the document called the complaint. . The court saw similarities between this case and a more recent one, Corson v. Commissioner (114 TC 354 (2000)). Corson also was based on a notice of deficiency, but both former spouses were petitioners in the same deficiency case. In this case, the taxpayer's former spouse did not file for relief from the IRS's deficiency determination. However, the Tax Court found that this should not preclude pre·clude tr.v. pre·clud·ed, pre·clud·ing, pre·cludes 1. To make impossible, as by action taken in advance; prevent. See Synonyms at prevent. 2. the former spouse from intervening in the taxpayer's case. Furthermore, the Tax Court found that Congress, when it expanded the innocent spouse rules in the 1998 act, was concerned about fairness to nonpetitioning spouses. The court also noted that IRC (Internet Relay Chat) Computer conferencing on the Internet. There are hundreds of IRC channels on numerous subjects that are hosted on IRC servers around the world. After joining a channel, your messages are broadcast to everyone listening to that channel. section 6015(e)(1)(A) specifically calls on the Tax Court to establish rules for notice to be given to nonpetitioning spouses and requires that they have an opportunity to be heard. The court stated that the reason for giving a nonpetitioning spouse the chance to be heard in these cases is to insure that innocent spouse relief is granted on the merits on the merits adj. referring to a judgment, decision or ruling of a court based upon the facts presented in evidence and the law applied to that evidence. A judge decides a case "on the merits" when he/she bases the decision on the fundamental issues and considers after all relevant evidence is brought forward. In any proceeding where a taxpayer brings forward a claim for relief from joint liability under section 6015, and the spouse or former spouse is not a party to the case, the IRS must serve notice on that taxpayer's spouse or former spouse. The IRS must inform and advise the nonpetitioning spouse of his or her right to intervene in the case, and to challenge the relief petition. * King v. Commissioner, 115 TC no. 8. (Aug. 10, 2000) --James Ozello, Esq., Ozello Tax and Legal Consulting, Ringwood, New Jersey Ringwood is a Borough in Passaic County, New Jersey, United States. As of the United States 2000 Census, the borough population was 12,396. It is the home of Ringwood State Park which contains the State Botanical Garden, the Shepherd Lake Recreation Area, and Skylands and Ringwood . RELATED ARTICLE: Bracing bracing, n a resistance to the horizontal components of masticatory force. for the Boomers Over the next 10 years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Social Security Administration projects a huge increase in the number of beneficiaries as baby boomers See generation X. begin to retire. Growth over the next 10 years in millions (A) Retirement and survivor beneficiaries (B) Disability beneficiaries [ILLUSTRATION OMITTED] |
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