Tax Court had no jurisdiction over nonrequesting spouse's petition.

• Author: Maier, John

A and his former spouse, E, owed a series of outstanding tax liabilities jointly and severally for various joint filings during their marriage. Their divorce decree incorporated the following term from the separation agreement:

All existing [joint debts] of the husband and wife shall remain the joint obligations of the husband and wife. The major joint debts of the parties are past due income taxes ... Should either party become unable to pay, the other party shall be, as a matter of law, required to pay all remaining unpaid taxes.

However, in apparent defiance of this agreement, E filed Forth 8857, Request For Innocent Spouse Relief, petitioning for relief front her joint and several liability for tax years 1990-1994. The IRS notified A of E's filing, took submissions from him and spoke with him on the phone; however, he was not given an opportunity to present his position in person. The IRS granted E relief for tax years 1991-1994 under Sec. 6015(f).

The IRS credited E's contention, disputed by A, that A and E had a subsequent agreement that she would pay off the state tax debts and he was to pay the Federal tax debts. A (the nonelecting spouse) filed a Tax Court petition appealing the IRS's determination. The Tax Court dismissed A's petition for lack of jurisdiction (Maier, 119 TC 267 (2002)); an appeal to the Second Circuit followed. At no time has the IRS issued a deficiency notice.

Discussion

The narrow question is whether Sec. 6015 provides the Tax Court with jurisdiction over a nonelecting spouse's petition for review of a Sec. 6015(f) ruling favorable to the electing spouse. Sec. 6015(e), titled "Petition for review by Tax Court," states: "In the case of an individual ... who elects to have [innocent spouse provisions] apply[,] ... the individual may petition the Tax Court (and the Tax Court shall have jurisdiction) to determine the appropriate relief available ..." Nowhere iii Sec. 6015, or ally other Congressional act, is the Tax Court given jurisdiction over petitions for review filed by nonelecting spouses.

Sec. 6015(e)(4), titled, "Notice to other spouse," states,"[t]he Tax Court shall establish rules which provide the individual filing a joint return but not making the election ... with adequate notice and an opportunity to become a party to a proceeding...." This provision plainly contemplates a preexisting proceeding to trigger the notice and related rights of the nonelecting spouse. Sec. 6015(h) confirms the same...