Camara v. Comm'r
| Decision Date | 28 September 2017 |
| Docket Number | Docket No. 12051-15.,149 T.C. No. 13 |
| Parties | FANSU CAMARA AND AMINATA JATTA, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent |
| Court | U.S. Tax Court |
Although Ps were married at all relevant times, H erroneously claimed single filing status on his 2012 individual income tax return. In the notice of deficiency R changed H's filing status to married filing separately. After petitioning this Court, Ps filed a joint 2012 income tax return. R contends that H's original 2012 single return was a "separate return" such that the limitations of I.R.C. sec. 6013(b)(2) apply to prevent Ps from claiming the benefits available to married taxpayers who file a joint return.
Held: The 2012 return that H originally filed, erroneously claiming "single" status, did not constitute a "separate return" within the meaning of I.R.C. sec. 6013(b). See Ibrahim v. Commissioner, 788 F.3d 834 (8th Cir. 2015), rev'g and remanding T.C. Memo. 2014-8; Glaze v. United States, 641 F.2d 339 (5th Cir. Unit B Apr. 1981), aff'g 45 A.F.T.R.2d 80-740, 1979 WL 1533 (N.D. Ga. 1979).
Held, further, H is entitled to joint filing status and rates. Fansu Camara and Aminata Jatta, pro se.
Beth A. Nunnink, for respondent.
By notice of deficiency dated February 10, 2015, respondent determined a $97,342 deficiency in Mr. Camara's 2012 income tax, along with an $11,411 addition to tax under section 6651(a)(2) and a $19,468 penalty under section 6662(a).1 In a second notice of deficiency--also dated February 10, 2015--respondent determined a $137,542 deficiency in Mr. Camara and Ms. Jatta's 2013 joint income tax, along with a $6,815 addition to tax under section 6651(a)(1) and a $27,508 penalty under section 6662(a). After concessions,2 the only issue remaining for decision is whether section 6013(b)(2)bars Mr. Camara from electing joint filing status and rates for his 2012 tax year.3 The parties submitted this case for decision without trial pursuant to Rule 122.
Mr. Camara was married to Ms. Jatta at all relevant times.4 Nevertheless, on his 2012 Form 1040, U.S. Individual Income Tax Return, filed on April 15, 2013, Mr. Camara erroneously checked the box for single filing status.
In the notice of deficiency issued to Mr. Camara for his 2012 tax year, respondent changed his filing status from single to married filing separately. On May 8, 2015, while residing in Tennessee, Mr. Camara and Ms. Jatta timely petitioned this Court with respect to that notice of deficiency as well as the notice of deficiency that respondent issued to them for their 2013 tax year.
On May 27, 2016, Mr. Camara and Ms. Jatta filed with the Internal Revenue Service (IRS) a joint 2012 return, which they had both signed. Ms. Jatta had not previously filed any 2012 return with the IRS.
Mr. Camara erred when he checked the box claiming single filing status on his original 2012 income tax return.5 There is no dispute that he should have either filed his 2012 return as married filing separately or filed jointly with Ms. Jatta.
The parties agree that if Mr. Camara and Ms. Jatta are entitled to elect joint filing status for 2012, the joint return that they filed on May 27, 2016--after receiving the notice of deficiency and petitioning this Court--correctly reflects their 2012 tax liability with certain agreed-upon changes.6 And respondent concedes on brief that Mr. Camara and Ms. Jatta meet the substantive requirements for joint filing status and rates for 2012. Respondent contends,however, that section 6013(b)(2) now bars Mr. Camara and Ms. Jatta from filing a joint return, and consequently, he suggests, they are procedurally barred from claiming the benefits generally available to married taxpayers who file a joint return. For the reasons discussed below, we disagree.
A married individual who "makes a single return jointly with his spouse" is taxed according to a more advantageous tax rate structure (with wider taxable income bands) than a married individual who "does not make a single return jointly with his spouse". Sec. 1(a), (d). In certain other respects as well, for married individuals, filing a joint return may be more beneficial than filing separate returns.7 The determination of whether an individual is married is generally made as of the close of the taxable year. Sec. 7703(a).
Section 6013 governs whether a married couple may make a joint return. Section 6013(a) allows a married couple to "make a single return jointly of income taxes" subject to three restrictions in paragraphs (1), (2), and (3), which are not applicable in this case.
Section 6013(b) permits married taxpayers to elect in certain circumstances to switch from a "separate return" to a joint return. (We sometimes refer to this election to switch from a "separate return" to a joint return as the section 6013(b) election to avoid confusion with the section 6013(a) election to make a joint return in the first instance and the "election to file a separate return", as referenced in section 6013(b)(1)). Section 6013(b)(1) provides this general rule: If an individual has filed a "separate return" for a taxable year for which that individual and his or her spouse could have filed a joint return, that individual and his or her spouse may nevertheless "make a joint return" for that year.
Section 6013(b)(2) lists four limitations on this election to switch to a joint return. Because the section 6013(b) election applies only where an individual has filed a "separate return", the section 6013(b)(2) limitations likewise apply only if the individual has filed a "separate return". See Millsap v. Commissioner, 91 T.C. 926, 937 (1988) (); Phillips v. Commissioner, 86 T.C. 433, 439 (1986) (overruling Durovic v. Commissioner, 54 T.C. 1364 (1970), aff'd on this issue, 487 F.2d 36 (7th Cir. 1973)), aff'd on this issue, 851 F.2d 1492 (D.C. Cir. 1988).
Respondent contends (1) that Mr. Camara's original 2012 return, on which he erroneously claimed single filing status, constitutes a "separate return" within the meaning of section 6013(b)(1) and consequently (2) that the section 6013(b)(2) limitations apply to prevent Mr. Camara from making the section 6013(b) election to switch to a joint return. The two limitations that respondent invokes are found in subparagraphs (A) and (B) of section 6013(b)(2). Subparagraph (A) bars the section 6013(b) election after three years from the filing deadline (without extensions) for filing the return for that year. Subparagraph (B) bars the section 6013(b) election "after there has been mailed to either spouse, with respect to such taxable year, a notice of deficiency * * *, if the spouse, as to such notice, files a petition with the Tax Court within * * * [90 days]".8 Respondent argues that these two limitations are satisfied because: (1) the date on which Mr. Camara and Ms. Jatta filed a joint return--May 27, 2016--was more than three years after Mr.Camara "filed a separate return"9 and (2) Mr. Camara "received a notice of deficiency, and filed a petition with the Tax Court before filing a joint return".10
The issue respondent raises has not been formally addressed by this Court in a reported or reviewed Opinion. Some Memorandum Opinions of this Court have interpreted "separate return" to include a single return or a head of household return for this purpose. See Ibrahim v. Commissioner, T.C. Memo. 2014-8, rev'd and , 788 F.3d 834 (8th Cir. 2015); Swonder v. Commissioner, T.C. Memo. 1994-430; Currie v. Commissioner, T.C. Memo. 1986-71; Blumenthal v. Commissioner, T.C. Memo. 1983-737; Saniewski v. Commissioner, T.C. Memo. 1979-337; Bryant v. Commissioner, T.C. Memo. 1970-265. For the most part these Memorandum Opinions merely accept the rationale of earlier cases, and the ultimate authority for these Memorandum Opinions appears to be traceable toearlier cases where the effect of an erroneous claim of filing status was neither addressed nor even presented as an issue.11
The most recent of the Memorandum Opinions in question, Ibrahim v. Commissioner, T.C. Memo. 2014-8, was reversed in 2015 by the Court of Appeals for the Eighth Circuit (with a dissent). Ibrahim v. Commissioner, 788 F.3d 834. And the Court of Appeals for the Fifth Circuit long ago held that a single return is not a "separate" return for purposes of section 6013(b). Glaze v. United States, 641 F.2d 339 (5th Cir. Unit B Apr. 1981), aff'g 45 A.F.T.R.2d (RIA) 80-740 (N.D. Ga. 1979). That decision is also binding in the Eleventh Circuit. See Bonner v. City of Prichard, 661 F.2d 1206, 1207 (11th Cir. 1981).12
Absent a stipulation to the contrary, this case is appealable to the Court of Appeals for the Sixth Circuit. See sec. 7482(b)(1)(A), (2). We "follow a Court of Appeals decision which is squarely in point where appeal from our decision lies to that Court of Appeals and to that court alone". Golsen v. Commissioner, 54 T.C. 742, 757 (1970), aff'd, 445 F.2d 985 (1971). Respondent argues that Morgan v. Commissioner, 807 F.2d 81 (6th Cir. 1986), aff'g T.C. Memo. 1984-384, compels decision in his favor under Golsen. We disagree.
Morgan involved married taxpayers who filed "protest returns" claiming married filing jointly status for some years and married filing separately status for other years. Affirming the Tax Court, the Court of Appeals for the Sixth Circuit in Morgan held that section 6013(b)(2) precluded the husband from claiming the benefits of joint return filing status after the Commissioner issued a notice of deficiency calculating his tax on the basis of married filing separately. Morgan does not squarely address the issue presented in the case before us: Morgan does not explain the effect under section 6013(b) of a married...
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