Tax News

CCH (cch.taxgroup.com) reports:

  An individual was not entitled to either innocent spouse relief or separation of liability under the innocent spouse rules with respect to her liability for unpaid taxes because her request was not made within two years of the first collection activity taken. The mailing of the notice of intent to levy represented the first collection activity and the taxpayer requested the relief more than two years after the notice was mailed to her last known address.

  Although the taxpayer claimed that she never actually received the notice, actual receipt was not required for the two-year period to begin to run. Nothing in the code or regulations requires actual receipt of the notice. Additionally, there was no reason that actual receipt would be required for purposes of requesting innocent spouse relief when, for purposes of commencing the 30-day period within which to request an IRS Appeals hearing, actual receipt of the notice of intent to levy was not required for properly mailed notices.

  With respect to the taxpayer's request for equitable relief under the innocent spouse rules, however, there was not a two-year limitations period. The two-year limitations period in Reg. §1.6015-5(b)(1) was held invalid in C.M. Lantz , 132 TC No. 8, Dec. 57,784. In invalidating the regulation, the Tax Court analyzed the regulation under the standard set forth in Chevron, U.S.A. Inc. v. Natural Res. Def. Council, Inc. , 467 US 837 (1984), the same standard that would be used by the Court of Appeals for the Third Circuit to which an appeal would lie.

D. Mannella, 132 TC No. 10, Dec. 57,787

Other References:

 
Code Sec. 6015

  CCH Reference - 2009FED ¶35,192.25

  CCH Reference - 2009FED ¶35,192.455

  Tax Research Consultant

  CCH Reference - TRC INDIV: 18,052.10