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On Jan. 7, 2000, the United States brought an
action against Ps in Federal District Court to reduce
to judgment their unpaid assessments for 1981, 1990,
and 1992. Ps raised only frivolous arguments in this
proceeding. Both Ps executed the pertinent documents
filed in the District Court action. Neither P asserted
in the District Court action an entitlement to relief
from joint and several liability pursuant to sec. 6015,
I.R.C. On Aug. 11, 2000, the District Court granted
the Government’s motion for summary judgment and
entered a judgment against Ps in the amounts of the
unpaid assessments for 1981, 1990, and 1992. The
District Court’s judgment was affirmed on appeal and
became final.
In 2001, Ps filed separate elections with R
claiming relief from joint and several liability under
sec. 6015, I.R.C. R did not respond to Ps’ elections.
Ps then filed with the Court separate petitions for
determination of relief from joint and several
liability for 1980, 1981, 1990, and 1992. R filed a
motion for summary judgment in each case.
Held: R’s motions for summary judgment are
granted in that Ps cannot claim relief under sec. 6015,
I.R.C., for 1980 inasmuch as their joint tax liability
for that year was fully paid prior to the effective
date of sec. 6015, I.R.C. Held, further, R’s motion
for summary judgment as to P-H is granted as to the
taxable years 1981, 1990, and 1992 in that P-H
“participated meaningfully” in the District Court
collection action, and, therefore, P-H’s claims are
barred under the doctrine of res judicata as delineated
in sec. 6015(g)(2), I.R.C. Held, further, R’s motion
for summary judgment as to P-W is denied as to the
taxable years 1981, 1990, and 1992 in that the question
whether P-W “participated meaningfully” in the District
Court collection action presents a material issue of
fact.
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Last modified: May 25, 2011