Commissioner of Internal Revenue v. Gwendolyn A. Ewing, Gwendolyn A. Ewing v. Commissioner of Internal Revenue

The Commissioner of Internal Revenue challenges a decision of the United States Tax Court, concluding that Gwendolyn Ewing was entitled to relief under the so-called equitable innocent spouse provision of the Internal Revenue Code (“I.R.C.”), 26 U.S.C. § 6015 (f). The Commissioner further contends that the Tax Court did not have jurisdiction to review Ewing’s petition under I.R.C. § 6015(e). Ewing cross-appeals the Tax Court’s failure to order that she be granted a refund of excess taxes paid. We have jurisdiction to review decisions of the Tax Court pursuant to I.R.C. § 7482(a)(1). We conclude that the Tax Court erred in holding that it had jurisdiction because there was no deficiency asserted, as required by I.R.C. § 6015(e). We therefore reverse the decision of the Tax Court.

I

Ewing and Richard Wiwi were married in September 1995. They decided to file a joint income tax return, rather than separate returns, for 1995 because the joint return lessened their tax liability. On the return, they reported $57,373 in wages earned by Ewing as a medical technologist, $23,502 in business income earned by Wiwi, who was self-employed as a financial adviser, and $16,892 in taxes due.…