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4. Mrs. Freeman’s Pending Innocent Spouse Claim
At the time of the section 6330 hearing, Mrs. Freeman had an
innocent spouse case pending before the Tax Court at docket No.
18985-02 for her 1980 through 1986 and 1994 tax years. In their
petition, petitioners argued that, because of Mrs. Freeman’s
pending innocent spouse case: (1) Respondent abused his
discretion by considering the assets of both spouses; and (2) the
notice of intent to levy was invalid against Mrs. Freeman.
Petitioners did not argue on brief that respondent abused
his discretion by considering the assets of both spouses.
Therefore, we conclude that petitioners have abandoned this
argument. Even so, we do not find that Ms. Cochran’s
consideration of the assets of both spouses was arbitrary or
capricious. In the final notice, respondent proposed to levy
against petitioners’ assets to collect their outstanding tax
liabilities for 1980 through 1985, 1989, and 1990. Because her
innocent spouse case did not include 1989 and 1990, Mrs.
Freeman’s assets were exposed to collection of her outstanding
tax liabilities for those years.
Petitioners continued to argue on brief that the notice of
intent to levy was invalid against Mrs. Freeman. This issue is
moot. Section 6015(e)(1)(B)(i) provides:
no levy * * * shall be made, begun, or prosecuted
against the individual making an election under
subsection (b) or (c) [relating to innocent spouse
relief] for collection of any assessment to which such
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