Ewing and Richard Wiwi were married in September 1995 and elected to file a joint tax return for that same year. They reported their joint income and tax liability properly on the return, but Richard did not make estimated tax payments throughout the year for his self-employment income. As a result, the return included a penalty for underpayment of estimated tax and a liability of over $6,000. They both signed the return and they each included a check for a portion of the tax due. The total payments made by the Wiwi's were less than the tax due.
In 1999, Ewing filed a Request for Innocent Spouse Relief, seeking relief from the remaining unpaid 1995 tax liability. She claimed she did not know that her husband had failed to make estimated tax payments, but he later promised to pay the tax due, and she did not learn that the tax had not been paid until November 1998. The IRS denied her Request and she appealed to the Tax Court.
The Tax Court concluded that it had jurisdiction over her case and that she should be entitled to relief. The IRS appealed.
The Court of Appeals for the 9th Circuit held that the Tax Court lacked jurisdiction in the case, therefore, it did not look at the her substantive claim for relief from the tax. The "Tax Court has jurisdiction over a petition only when a deficiency has been asserted..." Here, the amount of tax listed on the Ewing's return was correct and so the IRS did not assert that the tax due was insufficient.
Ewing also tried to get a refund of the amount she already paid for the tax liability. The 9th Circuit found that she had failed to raise the issue with the Tax Court and as a result she couldn't raise it now.
Read the opinion here.
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