By: Derek Hawkins//March 24, 2020//
7th Circuit Court of Appeals
Case Name: Rick E. Jacobsen v. Commissioner of Internal Revenue
Case No.: 18-3371
Officials: BAUER, ROVNER, and SYKES, Circuit Judges.
Focus: Tax Deficiency – Innocent Spouse Relief
Petitioner Rick E. Jacobsen’s former wife Tina M. Lemmens embezzled over $400,000 from her employer, income that was not reported on the couple’s jointly filed income taxes. As relevant here, after Lemmens was convicted for her embezzlement, the Internal Revenue Service (“IRS”) audited the couple’s joint tax returns for 2010 and 2011.
For those years, the IRS proposed total net adjustments attributable to omitted embezzlement income (there were other unrelated proposed adjustments) of over $300,000, with corresponding deficiencies and accuracy-related penalties of over $150,000. Jacobsen sought relief under the tax code’s “innocent spouse” provision, 26 U.S.C. § 6015(b), and equitable relief provision, § 6015(f). As relevant here, the Tax Court granted Jacobsen innocent spouse relief for 2010, but denied all relief for 2011. Jacobsen appeals, but we affirm.
Affirmed