Briefs
Spousal Relief in Small Tax Cases
The Tax Court has held that for purposes of qualifying for the small tax
case procedures under IRC Sec. 7463(f)(1), relating to spousal relief under
IRC Sec. 6015(e), the $50,000 threshold is determined by including the total
amount of taxes, interest and penalties for which a taxpayer seeks relief
calculated as of the date the petition is filed. The taxpayer sought IRC
Sec. 6015(e) relief for a time frame spanning six tax years. On the date her
petition was filed, the amount of unpaid tax, interest and penalties for
which she sought relief did not exceed $50,000 for any single tax year.
However,
the total of the amounts for all years exceeded $50,000. The court concluded
that, under these circumstances, the taxpayer exceeded the statutory
threshold and was prohibited from pursuing small tax case status
(Gilda Petrane, 129 TC No. 1).
This newsletter is provided by
Somerset for our clients and other interested persons upon request.
Since technical information is presented in generalized fashion, no
final conclusion on these topics should be made without further review.
For additional information on the issues discussed, please contact
Steve Riddle,
Tom Thieme,
Rex Collins or
Doug Ayres
of our
Litigation & Valuation Team.
This document is not intended or written to be used, and cannot be used,
for the purpose of avoiding tax penalties that may be imposed on the
taxpayer.
Somerset CPAs,
P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
www.somersetcpas.com
