Tax News

CCH (cch.taxgroup.com) reports:

  In a case of first impression, the Tax Court properly denied an innocent spouse's request for a refund of community property used to pay tax liabilities attributable to her husband's income because Code Sec. 6015(g) does not preempt state (California) community property law. While the determination whether a spouse qualifies for innocent spouse status is to be made under Code Sec. 6015(a)without regard to community property laws, Code Sec. 6015(g), the refund provision of the innocent spouse relief statute, has no similar language. Legislative history also suggests that Code Sec. 6015(a) was drafted to account for the expanded means of allocating items between spouses to determine eligibility for innocent spouse relief; it was not meant to preempt community property laws with respect to refunds.

  Affirming the Tax Court, 126 TC 47, Dec. 56,412.

L.E. Ordlock, CA-9, 2008-2 USTC ¶50,457

Other References:

 
Code Sec. 6015

  CCH Reference - 2008FED ¶35,192.75

 
Code Sec. 6321

  CCH Reference - 2008FED ¶38,136.54

  Tax Research Consultant

  CCH Reference - TRC IRS: 33,102.05