A recent Tax Court decision was reported dealing with Innocent Spouse. J. Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator with locations in Raleigh and Wilmington, NC & North Myrtle Beach and Myrtle Beach, SC works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for clients.
No Innocent Spouse Relief for Taxpayer Reluctant to Confront Financial Problems: In Sleeth v. Comm’r, T.C. Memo. 2019-138, the Tax Court rejected a taxpayer’s request for innocent spouse reliief after concluding that the taxpayer’s unwillingness to confront the financial problems she and her former spouse faced weighed strongly against relief. While the taxpayer’s ex-husband supported granting the taxpayer relief, the court concluded that the taxpayer had cooperated in her ex-spouse’s practice of simply not paying taxes and that her assumption that her former spouse would pay the taxes due was unreasonable and not credible.