## Facts

- Karen Marie Wilson and her then-husband filed joint federal income tax returns.
- The IRS later determined deficiencies and sought to collect from Wilson under joint and several liability for joint returns.
- Wilson requested equitable “innocent spouse” relief from joint and several liability under I.R.C. § 6015(f).
- The IRS denied Wilson’s request through its administrative process.
- Wilson petitioned the U.S. Tax Court, which applied de novo review, considered evidence outside the administrative record, and granted Wilson equitable relief.
- The Commissioner appealed, disputing (1) the Tax Court’s de novo standard of review and (2) its consideration of evidence beyond the administrative record.

## Issues

1. In a Tax Court proceeding under I.R.C. § 6015(f), must the Tax Court decide entitlement to equitable relief using de novo review, or only review the IRS denial for abuse of discretion?
2. In such a proceeding, is the Tax Court confined to the IRS administrative record, or may it consider evidence outside that record?

## Decision

- The Ninth Circuit affirmed the Tax Court’s judgment granting Wilson equitable innocent spouse relief under § 6015(f).
- The Tax Court must apply a de novo standard of review when determining entitlement to equitable relief under § 6015(f).
- The Tax Court’s scope of review is not limited to the administrative record; it may consider evidence outside that record.

## Legal Principles

- I.R.C. § 6015(e)(1)(A)’s authorization for the Tax Court to “determine” the appropriate relief under § 6015 contemplates an independent judicial determination, not deferential review of an agency decision.
- In § 6015(f) cases, the Tax Court applies de novo review to eligibility for equitable relief.
- In § 6015(f) cases, the Tax Court may admit and weigh evidence not presented during the IRS administrative process.
- Prior circuit precedent limiting Tax Court jurisdiction in certain pre-deficiency filings does not control the standard or scope of review once the Tax Court properly has jurisdiction under § 6015(e)(1)(A).

## Conclusion

The Ninth Circuit held that the Tax Court independently determines entitlement to equitable innocent spouse relief under I.R.C. § 6015(f) using de novo review and may consider evidence beyond the IRS administrative record, and it affirmed relief for Wilson.


Wilson v. Comm'r of Internal Revenue, 705 F.3d 980 (9th Cir. 2013)