United States Sixth Circuit

Tax Court's denial of petitioner's request for relief based on the tax code's innocent-spouse provision, 26 U.S.C. section 6015(b), and equitable-relief provision, section 6015(f), is affirmed where: 1) the Tax Court did not commit clear error in denying innocent-spouse relief based on the reason-to-know element of section 6015(b)(1) as plaintiff should have inquired into favorable tax benefits thrown off by the couple's investment; 2) tax court did not abuse its discretion with respect to its findings on reason to know in determining that petitioner had reason to suspect a possible understatement of taxes; and 3) tax court's finding on economic hardship did not amount to a clearly erroneous assessment of the evidence.

Appellate Information

• Argued 01/20/2010
• Decided 02/17/2010
• Published 02/17/2010

Judges

• Before SILER, MOORE, and CLAY, Circuit Judges.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ARGUED:Kenton L. Ball, Slone & Benton PSC, Lexington, Kentucky, for Appellant. Kenneth W. Rosenberg, United States Department Of Justice, Washington, D.C., for Appellee. ON BRIEF:Kenton L. Ball, Slone & Benton PSC, Lexington, Kentucky, for Appellant. Kenneth W. Rosenberg, Jonathan S. Cohen, United States Department of Justice, Washington, D.C., for Appellee.