Rogers v. Commissioner of Internal Revenue

Record contained sufficient evidence to support Tax Court’s decision that denied petitioner’s request for innocent spouse relief that would relieve petitioner from liability to pay tax obligations arising out of fraudulent tax scheme generated over period of years by petitioner’s husband. With respect to petitioner’s claim under section 6015(b) of Tax Code, Tax Court could properly find, with respect to 2003 joint tax return, that petitioner could not obtain innocent spouse relief due to her significant participation in tax deficiency trial with respect to said return, and due to fact that petitioner, who held law and MBA degrees, clearly understood proceedings and implications of court’s decision. Also, with respect to remaining seven tax returns, Tax Court could properly look to petitioner’s extensive education, her involvement as office manager to her husband’s businesses/law office in which she maintained husband’s accounting records, as well as husband’s lack of intent to deceive petitioner regarding his financial records to support Tax Court’s conclusion that petitioner knew or had reason to know of tax deficiencies for relevant tax returns so as to preclude her from obtaining innocent spouse relief. Ct. further noted that petitioner’s knowledge that she and her husband had earned $13 million from land sales and yet paid little to no taxes also supported finding that petitioner was not entitled to innocent spouse relief.