Maier v. Comm'r of Internal Revenue

Decision Date20 November 2002
Docket NumberNo. 5410–02.,5410–02.
Citation119 T.C. 267,119 T.C. No. 16
PartiesJohn MAIER III, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
CourtU.S. Tax Court

OPINION TEXT STARTS HERE

Taxpayer filed petition challenging IRS' administrative determination granting his former spouse relief from joint and several liability. IRS moved to dismiss. The Tax Court, Dawson, adopted the decision of Panuthos, Chief Special Trial J., which held that Court lacked jurisdiction, since no determination was made by IRS with regard to taxpayer.

Motion granted.

P filed a petition with the Court challenging R's administrative determination granting his former spouse relief from joint and several liability on joint returns pursuant to sec. 6015(f), I.R.C. R moved to dismiss for lack of jurisdiction.

Held: The Court will grant R's motion and dismiss this case for lack of jurisdiction on the ground that R did not issue a notice of deficiency to P, nor did R make any other determination with regard to P that would confer jurisdiction on the Court. John Maier III, pro se.

Charles Hall and Scott E. Fink, for respondent.

OPINION

DAWSON, J.

This case was assigned to Chief Special Trial Judge Peter J. Panuthos, pursuant to the provisions of section 7443A(b)(5) and Rules 180, 181, and 183. 1 The Court agrees with and adopts the opinion of the Chief Special Trial Judge, which is set forth below.

OPINION OF THE SPECIAL TRIAL JUDGE

PANUTHOS, Chief J.

This matter is before the Court on respondent's motion to dismiss for lack of jurisdiction. As explained in detail below, we shall grant respondent's motion to dismiss.

Background

John Maier III (petitioner) filed joint Federal income tax returns with his then wife, Judith L. Maier (Ms. Maier), for the taxable years 1990, 1991, 1992, 1993, and 1994. The Maiers reported taxes due on their returns for the taxable years 1990, 1991, 1992, 1993, and 1994, but failed to pay all or part of such taxes.

On December 22, 1995, the Maiers executed a separation agreement. The separation agreement addressed the Maiers' outstanding Federal and State income tax liabilities as follows:

SECTION NINE

PAYMENT OF JOINT DEBTS BY HUSBAND AND WIFE

All existing [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, both federal and state. These obligations, by operation of law, are joint obligations and such obligations cannot be changed from being joint obligations by the parties. Currently, the wife is paying New York State for past income taxes and the husband is making payments under a Chapter 13 plan and the Federal taxes are the priority creditor. Both the husband and wife recognize that it is in their best interest to pay all such taxes as quickly as possible. The husband and wife agree to use their best efforts to pay such taxes and to continue to make payments as set forth above. 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, any payments made by one of the parties, either voluntarily or involuntarily, shall not be reimbursed by the other party.

* * *

SECTION EIGHTEEN
INCOME TAX RETURNS

The parties agree that commencing with the tax year 1995 (due April 15, 1996), either party may file separately unless both parties mutually agree to file jointly. The parties agree that the husband and wife shall remain jointly responsible without contribution from the other to pay any deficiency in income taxes, federal and state, relating to the marital income of the parties for earlier years. Husband and wife shall also remain jointly liable to pay any penalty or interest arising from such income tax liability.

On December 29, 1995, a final judgment of divorce was entered and filed by the Supreme Court of New York (County of Schoharie). The Maiers' marriage was terminated pursuant to the final judgment of divorce. The final judgment of divorce stated in pertinent part: “it is further ORDERED, ADJUDGED AND DECREED, that the Separation Agreement dated December 22, 1995, be incorporated in this decree and shall survive the same, and not be merged within it”.

On December 22, 1999, Ms. Maier filed with respondent a Form 8857, Request For Innocent Spouse Relief, requesting relief from joint and several liability for the taxable years 1990, 1991, 1992, 1993, and 1994. Respondent notified petitioner that Ms. Maier had elected to claim relief from joint and several liability and invited petitioner to submit to respondent information relevant to Ms. Maier's claim. Petitioner submitted information to respondent by mail and spoke with respondent's representatives by telephone, but he was not permitted to present his position in person.

On December 11, 2001, respondent issued two letters to petitioner. In the first letter, respondent informed petitioner that Ms. Maier's claim for relief from joint and several liability for the taxable year 1990 was not considered because the period of limitations with regard to collection under section 6502 expired as to Ms. Maier on September 30, 2001. The letter also stated: “Your collection statute has been extended to April 2, 2006 because of your bankruptcy filing. You are now the sole person responsible for the repayment of the 1990 taxes.” In the second letter, respondent informed petitioner that Ms. Maier's claim for relief from joint and several liability for the taxable years 1991, 1992, 1993, and 1994 had been granted under section 6015(f).2

On December 24, 2001, respondent issued to petitioner a notice of change to his account for the taxable year 1990 stating that he owed $26,077.75, consisting of tax, a penalty for late payment, and interest.

On March 6, 2002, petitioner filed a petition with the Court styled PETITION FOR DETERMINATION OF RELIEF FROM JOINT AND SEVERAL LIABILITY ON A JOINT RETURN”.3 The petition states that petitioner disagrees with respondent's determination granting Ms. Maier relief from joint and several liability for the taxable years 1990 to 1994.

In response to the petition, respondent filed a motion to dismiss for lack of jurisdiction. Respondent contends that the Court lacks jurisdiction in this case because petitioner has not filed a claim for relief from joint and several liability, respondent has not issued to petitioner a notice of deficiency under section 6213(a), and respondent has not made any other determination with regard to petitioner that would confer jurisdiction upon the Court.

Petitioner filed an opposition to respondent's motion to dismiss. He contends that respondent's administrative determination granting Ms. Maier relief from joint and several liability for the years 1990 to 1994 deprived him of due process of law, is contrary to section 6015(g)(2), and, absent review by this Court, he will be deprived of a judicial remedy.

Pursuant to notice, this matter was called for hearing at the Court's motions session in Washington, D.C. Petitioner and counsel for respondent appeared at the hearing and offered argument with regard to respondent's motion to dismiss.

Discussion

Section 6013(d)(3) provides that if a husband and wife file a joint Federal income tax return, “the tax shall be computed on the aggregate income and the liability with respect to the tax shall be joint and several.” However, section 6015(a) provides that, notwithstanding section 6013(d)(3), an individual who has made a joint return may elect to seek relief from joint and several liability on such return. For a detailed discussion of the legislative history of section 6015 (and its predecessor section 6013), see Cheshire v. Commissioner, 115 T.C. 183, 188–189, 2000 WL 1227132 (2000), affd. 282 F.3d 326 (5th Cir.2002).

The Tax Court is a court of limited jurisdiction, and we may exercise our jurisdiction only to the extent authorized by Congress. Sec. 7442; Judge v. Commissioner, 88 T.C. 1175, 1180–1181, 1987 WL 49322 (1987); Naftel v. Commissioner, 85 T.C. 527, 529, 1985 WL 15396 (1985). Congress vested the Court with jurisdiction to review a taxpayer's election to claim relief from joint and several liability on a joint return under specified circumstances. See King v. Commissioner, 115 T.C. 118, 121–122, 2000 WL 1131914 (2000); Corson v. Commissioner, 114 T.C. 354, 363–364, 2000 WL 637480 (2000). A taxpayer may seek relief from joint and several liability on a joint return by raising the matter as an affirmative defense in a petition for redetermination invoking the Court's deficiency jurisdiction under section 6213(a). See Butler v. Commissioner, 114 T.C. 276, 287–289, 2000 WL 502841 (2000). In addition, a taxpayer may file a so-called stand-alone petition seeking relief from joint and several liability on a joint return where the Commissioner has issued a final determination denying the taxpayer's claim for such relief or the Commissioner has failed to rule on the taxpayer's claim within 6 months of its filing. See sec. 6015(e)(1); Mora v. Commissioner, 117 T.C. 279, 2001 WL 1607291 (2001). Finally, a taxpayer may request relief from joint and several liability on a joint return in a petition for review of a lien or levy action. See secs. 6320(c), 6330(c)(2)(A)(i).

In the instant case, Ms. Maier filed a request for relief from joint and several liability with regard to unpaid taxes that she and petitioner reported on joint returns for the taxable years 1990 through 1994. Following administrative proceedings, respondent concluded: (1) Ms. Maier was not responsible for unpaid taxes for 1990 on the ground the period of limitations on collection had expired as to her, and (2) Ms. Maier qualified for relief from joint and several liability under section 6015(f) for the years 1991 through 1994. Having apparently obtained complete relief administratively, Ms. Maier did not file a petition with the Court.4

The parties are in agreement that respondent has not issued a notice of deficiency to petitioner for the...

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    ...did not go unnoticed. In 2004 the Second Circuit expressed doubt. Maier v. Commissioner, 360 F.3d 361, 363 n. 1 (2d Cir.2004), affg. 119 T.C. 267 (2002). The Government then changed its mind and argued that we had no jurisdiction when Ewing I was appealed. In February 2006, the Ninth Circui......
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    ...did not go unnoticed. In 2004 the Second Circuit expressed doubt. Maier v. Commissioner, 360 F.3d 361, 363 n.1 (2d Cir. 2004), affg. 119 T.C. 267 (2002). The Government then changed its mind and argued that we had no jurisdiction when Ewing I was appealed. In February 2006, the Ninth Circui......
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