The U.S. district court in Massachusetts has dismissed a taxpayer’s claim that she was entitled to and deserved innocent spouse relief under Notice 2011-70.
In Notice 2011-70, the IRS announced the removal of the two-year limitation period for claims for innocent spouse relief. The notice also specifies that the IRS would treat requests for innocent spouse relief differently depending on what stage a particular case was in when the notice was issued.
In 2006, a taxpayer’s request for innocent spouse relief was rejected due to her lengthy litigation history. Now, with this new notice in place, the taxpayer demanded her ruling be reversed. She filed suit to stop the IRS from collecting on the unpaid federal income tax liabilities on the grounds that the IRS now treats all request differently. She argued that in Notice 2011-70, the IRS stated that in cases in which an innocent spouse claim had been litigated and was final, it would not take further collections from the taxpayer if their request for innocent spouse relief would have been granted if the request would have been timely under the two-year limitation period.
But in the case of this particular taxpayer, the First Circuit held that the notice could not apply to her because the two-year deadline was not the only justification for the rejection of her claim. In fact, her claim was primarily barred because she failed to raise it at the administrative level.
If you need help with an innocent spouse claim with the IRS, call 877-829-3535 and let the seasoned tax attorneys at US Tax Shield guide you through the process and get IRS help to settle your issues.