Haag v. Shulman, No. 11-1979 (1st Cir. 2012)Annotate this Case
The government sued the Haags to reduce tax liabilities ($1,620,224) to judgment. Mrs Haag asserted entitlement to "innocent spouse" relief 26 U.S.C. 6015(b)(1)-(2),(f)). The Haags brought a separate claimthat they had been denied a collection due-process hearing, 26 U.S.C. 6320. The district court consolidated the actions and entered judgment against the Haags on the collection action. Concerning innocent spouse relief, the court found that the statute required that claims be filed within two years after the first collection action. The IRS discovered evidence that it had sent proper notice of the CDP hearing; the court ruled against the Haags in their separate action. The First Circuit affirmed. The Haags filed another suit, alleging that the government failed to notify their attorney of tax liens. Mrs. Haag sued, claiming that the IRS had failed to consider a request for innocent spouse relief that she raised in 2005. The district court dismissed both as barred by res judicata. The First Circuit affirmed. Mrs. Haag then claimed that in 2009 the Tax Court invalidated a regulation imposing a two-year limitations period on innocent spouse requests. The IRS denied the claim. The Tax Court granted judgment for the government. The First Circuit affirmed.