Following up on my prior posts:
- Divided Tax Court Invalidates Innocent Spouse Reg (Apr. 8, 2009)
- 7th Cir. Reverses Tax Court, Upholds 2-Year Deadline on Innocent Spouse Claims (June 8, 2010)
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.)
7 responses to “Tax Court Refuses to Follow 7th Circuit, Again Invalidates Innocent Spouse Reg”
Good for the court. Lantz was right the first time around.
So federal tax laws are different depending on which jurisdiction the taxpayers happen to live in?
Tax Court defies Judge Posner outside his circuit
If you are a wronged spouse, the Tax Court will give you time to claim “innocent spouse relief” of tax…
Tax Court defies Judge Posner outside his circuit
If you are a wronged spouse, the Tax Court will give you time to claim “innocent spouse relief” of tax…
Tax Court defies Judge Posner outside his circuit
If you are a wronged spouse, the Tax Court will give you time to claim “innocent spouse relief” of tax…
Tax Court defies Judge Posner outside his circuit
If you are a wronged spouse, the Tax Court will give you time to claim “innocent spouse relief” of tax…
Tax Court defies Judge Posner outside his circuit
If you are a wronged spouse, the Tax Court will give you time to claim “innocent spouse relief” of tax…
Tax Court defies Judge Posner outside his circuit
If you are a wronged spouse, the Tax Court will give you time to claim “innocent spouse relief” of tax…
Tax Court defies Judge Posner outside his circuit
If you are a wronged spouse, the Tax Court will give you time to claim “innocent spouse relief” of tax…
Tax Court defies Judge Posner outside his circuit
If you are a wronged spouse, the Tax Court will give you time to claim “innocent spouse relief” of tax…
Tax Court defies Judge Posner outside his circuit
If you are a wronged spouse, the Tax Court will give you time to claim “innocent spouse relief” of tax…
Unless and until the Supreme Court settles a given matter, they can indeed be applied differently in different circuits. (The only quasi-exception is when a taxpayer-friendly ruling comes from the Federal Circuit, at which point all taxpayers covered by that decision and who have the means to prepay will be filing in Court of Claims.) Even then, there can be a few differences based on state law (for example, innocent spouse relief is generally unavailable to residents of the majority of community-property states–or at least used to be, my CPE’s haven’t covered that).
How many times does the Tax Court have to get it wrong before it “gives in”? I am guessing 4 reversals, which I believe are locks, will do it. Don’t mess with Chevron!
Given that in recent years the court itself is willing to reverse its binding precedents as it sees fit, without any notice, even after only a short passage of time (a couple of years and in some cases no reversals and no negative feedback) who knows what it will do or how long it will take.
And yes, tax laws are different depending on which Circuit the taxpayer lives in. In another brilliant move Congress created the Tax Court with national jurisdiction so there would be uniformity regarding tax law while at the same time refusing to create a single court of appeals for tax cases (wither a specific tax court of appeals, or a single circuit court like the Fed Circuit–which already hears all tax appeals from the Court of Federal Claims).