Marisol Severance, T. C. Memo. 2023-101, filed 8/8/23, owned her house in common with her husband, and they had a joint bank account. So when nonrequesting husband filed Ch 13, and IRS put in a tax claim, that started the two-year Section 6015(b)(1)(E) collection clock for Section 6015(b) innocent spousery. Marisol filed too late; in addition, neither she nor husband petitioned the SNOD that gave rise to the deficiency at issue.

Marisol does no better with Section 6015(f) equity. Judge Tamara Ashford finds Marisol had enough education to figure out husband’s foreign earned income exclusion failed the 330-day barrier. The test is constructive knowledge for Section 6015(f), not actual knowledge. Neither economic hardship nor illness are in play.

As both Marisol and her husband are both war veterans, I will keep my sympathies under control here, simply remarking that few war veterans I have encountered have degrees in taxation.

Marisol’s trusty attorney played a tough lie as well as can be played.

I note that Judge Ashford seems to read the record-rule amendment to Section 6015(e)(7) to provide that, although limited to the admin record and fresh evidence (none here) as to facts, whatever Appeals did is nothing to the point. Abuse of discretion has no part. The SO may not have abused their discretion, but Tax Court can reach a different conclusion. That makes sense to me.