- 5 -
This was not by choice--they had again fallen behind on their
mortgage payments, so the mortgagee bank foreclosed on and sold
their condo. The bank’s senior lien was satisfied, and, because
there were proceeds left over, so was the Federal tax lien (which
was junior to the mortgage).4 IRS records confirm that the
Parkers’ 1996 tax liability was paid in full by November 25,
2002.
While this was going on, the Commissioner was still
reviewing Ms. Goode-Parker’s innocent spouse claim, but in
December 2002 he finally denied her relief because she had filed
her request more than two years after the first collection
activity had begun, back in 1998. She responded by filing a
petition with this Court challenging the Commissioner’s
determination. The Commissioner moved for summary judgment, but
we denied his motion in light of McGee v. Commissioner, 123 T.C.
314 (2004).5
4 Ms. Goode-Parker argues that under section
6015(e)(1)(B)(i) the Commissioner was prohibited from collecting
while her innocent spouse case was pending. Section
6015(e)(1)(B)(i), however, restricts only the Commissioner’s
power to collect unpaid taxes by “levy or proceeding in court”--
he may still file a lien. Beery v. Commissioner, 122 T.C. 184,
189-190 (2004); see sec. 1.6015-7(c)(4)(i) and (ii), Income Tax
Regs.
5 We held in McGee that the Commissioner must tell people
subject to joint liability for unpaid taxes of their right to
relief under section 6015 whenever he sends them a collection-
related notice. McGee v. Commissioner, 123 T.C. 314, 319 (2004).
The Commissioner conceded that the notices he sent to the Parkers
in collecting their 1996 tax debt didn’t include such a notice.
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Last modified: May 25, 2011