Tax Court does not have jurisdiction over duplicate request for relief.

• Author: Beavers, James

[ILLUSTRATION OMITTED]

The Tax Court held that it lacked jurisdiction over a request for Sec. 6015(f) equitable relief that was based on the same facts and grounds for relief as an earlier request that had been denied by the IRS.

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Judith Barnes was married to Nathan Genrich. On their joint return for 1997, Genrich reported a tax liability from the sale of real property owned by Barnes but did not fully pay the tax liability arising from the sale. Barnes and Genrich divorced in 1998. In November 2000, Barnes filed a Form 8857, Request for Innocent Spouse Relief (and Separation of Liability and Equitable Relief), seeking equitable relief from liability for the 1997 underpayment. In the request, Barnes argued that she was entitled to relief because (1) she did not know the contents of the 1997 return (her signature on the return had been forged) although she was aware of the property sale, and (2) she had been told that her husband would pay the taxes on the sale from his own funds.

The IRS determined that Barnes was not entitled to relief. In September 2001, the Service sent her a Letter 3279 (final determination letter) explaining why it was denying her relief; it stated that the letter represented the Service's final determination and that Barnes could file a petition with the Tax Court protesting the IRS's determination within 90 days of the date of the letter. Barnes did not file a petition with the Tax Court within 90 days.

Five and a half years later, Barnes filed another Form 8857 seeking Sec. 6015(f) equitable relief from the 1997 underpayment. The new Form 8857 contained a more detailed recitation of the facts included in the first Form 8857 and also alleged that her ex-husband and his business partner had been convicted of criminal securities fraud. In a Letter 3657C (a no-consideration letter), the IRS informed Barnes that it was rejecting her request on the grounds that Barnes had already filed a request for relief that the IRS had considered and denied. Therefore, according to the IRS, because the facts in the case had not changed, it could take no action on her request.

After receiving the Letter 3657C, on July 11, 2007, Barnes filed a petition with the Tax Court "for redetermination of the decision set forth by the Commissioner of Internal Revenue in the Final Notice of Determination, dated September 13, 2001, and as amended by its Letter 3657C dated May 1, 2007." The IRS sought to have the case dismissed for lack of...