Paul Caron reports that the Tax Court has flouted the 7th Circuit’s ruling in Lantz v. Commissioner, invalidating IRS regulations requiring that spouses seeking innocent spouse relief request that relief within two years of the first collection action:
A divided (8-5) Tax Court yesterday (in a case in which Tax Prof Ljubomir Nacev(Northern Kentucky) represented the taxpayer) refused to follow Judge Posner’s opinion in Lantz v. Commissioner, 607 F.3d 479 (7th Cir. 2010)), and instead held that it would adhere to its earlier decision (132 T.C. 131 (2009)), invalidating Reg. § 1.6015-5(b)(1), which required taxpayers seeking innocent spouse relief under I.R.C. § 6015(f) to request such relief within two years of the IRS’s commencement of the collection action. Hall v. Commissioner, 135 T.C. No. 19 (Sept. 22, 2010). (Hat Tip: Bryan Camp, Robert Nassau.)
Taxpayers residing in the 7th Circuit will have to follow Judge Posner’s ruling in Lantz. But in all other districts, Posner’s decision is merely persuasive and not controlling.
If you represent an otherwise qualified taxpayer who does not reside in the 7th circuit, you should apply for innocent spouse and cite Hall v. Commissioner as your authority even if more than two years have passed since the first collection action.
Related Posts:
1 response so far ↓
1 Another Innocent Spouse Win for IRS // Jun 15, 2011 at 7:45 pm
[...] Two Year Innocent Spouse Rule Again Invalidated by Tax Court [...]
Leave a Comment