And Judge Gerber Says It Ain’t Even Close

 Teresa Palomares a.k.a. Teresa Garcia has had a tough time of it, as 2014 T. C. Memo. 243, filed 12/2/14 makes clear.

Her refunds and credits were all being applied to the liabilities of her nogoodnik former spouse, who “…physically abused petitioner and threatened her with a gun. Petitioner sought assistance from Northwest Justice [a legal clinic] in connection with these events. From 2008 to 2010 Northwest Justice also assisted petitioner with her child custody battle, which lasted for two years, and her divorce proceeding. During the same period petitioner’s father, who lived in Mexico, was extremely ill, and her wages were garnished because of Mr. Palomares’ outstanding business obligations. These events and other stresses in petitioner’s life caused her to become depressed. The symptoms of petitioner’s depression included hopelessness, confusion, and forgetfulness. She was actively treated and took medication for her depression until sometime in 2010.” 2014 T. C. Memo. 243, at p. 5.

During her unhappy wedlock, Teresa filed jointly with Mr. P. When her refunds and credits were grabbed by IRS to satisfy Mr. P.’s delictions, Teresa turned to her friends at Northwest Justice.

Teresa spoke little English, of course.

The Northwesterners had her file Form 8379, Injured Spouse, to get back her misapplied moneys.

Of course, we battle-hardened tax veterans know the right form is Form 8857, Innocent Spouse, and the SOL is two years, but however expert the Northwesterners might be at Family Law, Tax Law isn’t their strongest suit.

Teresa can’t deal with IRS’s letter trying to suggest she file the right form (IRS uses English, and Teresa doesn’t, very much).

Finally, IRS agrees to allow a late-filed Form 8857 for whatever was collected in the past two years, but the rest is, as they used to say in the days of the Northwest fur trappers, “gone beaver”.

The Northwesterners want to claim “informal notice”.

Judge Gerber explains: “The informal claim doctrine is an equitable doctrine established by Federal courts that permits an informal claim for refund to suffice if it provides the Government with sufficient notice that a taxpayer is making a claim. A timely informal claim that meets the judicial standard can be subsequently amended and keep open an otherwise expiring period of limitation on making a claim. The sufficiency or adequacy of an informal refund claim is largely a question of fact.” 2014 T. C. Memo. 243, at p. 9. (Citations omitted, but add them to your briefs files).

But Teresa’s 8379 fails the test.

The IRS has to know what you want. The Form 8379 Teresa filed didn’t talk about all the years involved, only about one of them.

“Upon receipt of petitioner’s Form 8379, respondent was unaware of the details of petitioner’s personal life, her separation from her husband, or her belief that she should not be held liable for the 1996 tax liability. Though respondent’s September 24 letter notes that petitioner may have intended to file a Form 8857 and a copy of that form was included with the letter, this courtesy cannot be construed as reflecting Respondent’s awareness that petitioner was seeking a refund based on a request for relief from joint and several liability for the 1996 year.

“We hold that petitioner’s Form 8379 was insufficient to put respondent on notice that petitioner was seeking a refund on the basis of a request for section 6015 relief from joint and several liability for the 1996 tax year.” 2014 T. C. Memo. 243, at p. 13.

While Judge Gerber sympathizes with Teresa, he won’t stretch informal notice to include years not mentioned, or require IRS to research a taxpayer’s history to figure out what she wants or is entitled to.

If you want more on this depressing topic, see my blogpost “Lookback in Anger”, 12/12/11.