3rd Circuit Reverses Tax Court on Innocent Spouse Statute of Limitations

The Third Circuit Court of Appeals reversed the Tax Court on the validity of Treas. Reg. 1.6015-5(b)(1) which establishes a two year statute of limitations for innocent spouse relief under IRC Sec. 6015(f). The Court of Appeals remanded to the Tax Court for a finding on the petitioner’s argument for an equitable tolling of the statute.

For more on this question, see the Lantz opinion out of the Seventh Circuit.

Mannella v. Commissioner, No. 10-1308 (3rd Cir. Jan. 19, 2011)

Innocent Spouse Regulation is an Invalid Interpretation of the Statute

In a case appealable to the Sixth Circuit Court of Appeals, the Tax Court maintains that Treas. Reg. 1.6015-5(b)(1) is an invalid interpretation of IRC 6015(f) in circuits other than the Seventh Circuit (where such a ruling was overturned in Lantz v. Commissioner).

Hall v. Commissioner, 135 T.C. No. 19 (2010)

7th Circuit: Two Year Limit for filing Innocent Spouse Claims

The Seventh Circuit reverses the Tax Court and holds that innocent spouse claims must be made within two years of the beginning of IRS collection activity.

Lantz v. Commissioner, No. 09-3345 (7th Cir. June 8, 2010)

For more discussion on the Lantz decision and Sec. 6015(f) please click here.