Estate of Silvio Ravetti v. United States

The Estate of one spouse sued in district court to challenge the IRS determination that the other spouse was “innocent” of liability on the joint returns.

FACTS

Silvio and Martha Ravetti were divorced in 1982. They agreed to share tax liability arising out of past returns, and specifically provided for how to apportion liability if Martha were determined to be an “innocent spouse.” Silvio died in 1986. Meanwhile, Martha and the IRS stipulated, and the Tax Court decided pursuant to their stipulation, that she had no liability for additional taxes for 1976, 1977 and 1978, because she was an “innocent spouse” pursuant to 26 U.S.C. § 6013 (e)(1), with regard to the deficiencies. The Ravettis had filed jointly, and underpaid their taxes because of subsequently disallowed deductions arising out of tax shelters. The IRS allowed Martha the innocent spouse relief on the ground that she relied on her husband and their accountant to assure that the . returns were properly prepared, and “she did not benefit from the understatement of tax because the unpaid tax money was spent on his new wife or previous affairs.”

Silvio’s estate sued in district court for a tax refund of amounts paid under…