Case: U.S. Tax Court Grants Spousal Relief to Taxpayer Due to Spousal Abuse, Financial Control (T.C. Memo)

The U.S. Tax Court held that the taxpayer was entitled to full innocent spouse relief under IRC section 6015(f) for the 2019 tax year, affirming the IRS’s determination. Taxpayer, a physician, filed a joint return with her spouse for 2019. The IRS determined a deficiency due to unreported retirement distributions. Taxpayer sought innocent spouse relief. The court found that while the taxpayer had reason to know of the understatement, this was negated by her spouse’s abuse and financial control. The spouse controlled the finances, restricted the taxpayer’s access to information, and became aggressive when questioned. The court considered factors like ...