Taxpayer cannot revive equitable innocent spouse claim.

• Author: Nevius, Alistair M.

The U.S. District Court for the District of Massachusetts dismissed a taxpayer's claim that she was entitled to innocent spouse relief under Notice 2011-70, which announced the removal of the two-year limitation period for claims for equitable innocent spouse relief under Sec. 6015(f) (Haag, No. 11-CV -11591-PBS (D. Mass. 8/13/12)). The notice contains a number of transitional rules that explain that the IRS would treat requests for relief differently depending on what stage a case was in when the notice was issued on July 25, 2011. As the district court noted, Notice 2011-70 treats innocent spouse claims that were adjudicated and rendered final before July 25, 2011, differently from cases that were still being litigated on that date.

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The taxpayer's case had what the district court described as a "lengthy litigation history." The relevant case for these purposes was Haag, No. 02-CV -12490-REK (D. Mass. 9/30/04), in which, the district court noted, a court had earlier rejected the taxpayer's claim for innocent spouse relief. That case was final when judgment was entered against the taxpayer (and her husband) on Jan. 3, 2006.

After Notice 2011-70 was issued, the taxpayer filed suit to stop the IRS's efforts to collect on the unpaid federal income tax liabilities relating to that suit, seeking relief from the court's 2004 order. In Notice 2011-70, the IRS said that in cases in which an innocent spouse claim had been litigated and was final, it would not take further collection activity against the taxpayer if the IRS had stipulated in the court proceeding that the taxpayer's request...