Tax News

CCH (cch.taxgroup.com) reports:

  The IRS Office of Chief Counsel issued guidance to its attorneys with respect to the scope and standard of review in cases involving requests for relief from joint and several liability under Code Sec. 6015(f). In Porter I (Dec. 57,439), and Porter II (Dec. 57,792), the Tax Court ruled that it would make its own de novo determination regarding whether a requesting spouse is entitled to relief, and that it would not be limited to evidence in the administrative record. The IRS disagrees with these holdings, and the guidance instructs government attorneys to continue to argue that the scope of the Tax Court's review is limited to issues and evidence presented before IRS Appeals or Examination. Government attorneys are to raise scope and standard of review arguments whenever appropriate, noting the IRS's disagreement with the Porter opinions.

  In addition, the guidance urges the expeditious identification of all cases in which a taxpayer raises relief from joint and several liability for the first time in a petition to the Tax Court following receipt of a notice of deficiency, or when the taxpayer files a petition after six months from filing a claim for relief with the IRS but before a determination on the claim is issued. The Cincinnati Centralized Innocent Spouse Operations (CCISO) should be requested to make a determination with respect to these cases. If CCISO determines the petitioner is not entitled to relief, a status report should be filed with the Tax Court setting forth the IRS's determination and attaching CCISO's written analysis as an exhibit.

Chief Counsel Notice CC-2009-021