Attorney-at-Law

THE WIFE’S TALE

In Uncategorized on 01/13/2021 at 23:35

Except she isn’t. And that’s a sad tale, as her refund check is grabbed to pay her ex’s erroneous refund. Here’s Meredith Yvette James, 2021 T. C. Memo. 4, filed 1/13/21, who wants innocent spousery.

Here’s Judge Patrick J (“Scholar Pat”) Urda to give Meredith the bad news.

“The parties in this case stipulated that Ms. James and Mr. Bailey were not married in 2010, attaching as an exhibit the former spouses’ 2006 divorce decree. The purportedly joint tax return thus was not valid, as it was not filed by a husband and a wife, and Ms. James is thereby not eligible for section 6015 relief.

“Given the narrow scope of our section 6015 jurisdiction, this conclusion ends the case.” 2021 T. C. Memo. 4, at p. 7.

It’s truly a sad tale.

“Ms. James was married to Mr. Bailey from 2003 until their divorce in 2006. Mr. Bailey nonetheless lived with Ms. James in 2010, helping to care for both her and her children while Ms. James battled a serious illness. During this time Mr. Bailey was primarily responsible for the household’s finances.

“Although Mr. Bailey and Ms. James had been divorced for several years, Mr. Bailey worked with his accountant to file a joint Federal income tax return for himself and Ms. James for 2010. Trusting in her ex-husband, Ms. James did not review this return before signing it. The IRS issued a refund of $11,015, which was deposited into Mr. Bailey’s bank account.

“The IRS subsequently examined the 2010 joint tax return, determining that it had failed to report Ms. James’ unemployment compensation, $17,680, Mr. Bailey’s nonemployee compensation, $14,002, and interest income, $100. The IRS accordingly assessed additional tax of $10,990, an accuracy-related penalty under section 6662(a) of $2,198, and statutory interest of $390.” 2021 T. C. Memo. 4, at pp. 2-3.

Great job, accountant.

And you can’t blame Yvette, obviously self-represented. If she was really sick when this happened, and her ex was the only support she and the kids had, what was she to do? If she said a word and he walked out, where was she? As for what games he was playing, it’s easy to criticize from a distance.

And Judge Scholar Pat? ” As we have previously observed, ‘we do not have equitable powers to expand our statutorily prescribed jurisdiction no matter how unfair the circumstances may seem.’ Nor can we amend pleadings ‘to give us jurisdiction to order a refund of an overpayment even though it appears that she omitted).as not jointly and severally liable for the tax owed.'” 2021 T. C. Memo. 4, at pp. 7-8. (Citations omitted).

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