Kostelanetz attorneys Caroline D. Ciraolo, Andrew Weiner, and Michael Waalkes recently asked the Fourth Circuit to reverse and remand a U.S. Tax Court ruling that denied a request for innocent spouse relief.
In LaRosa v. Commissioner (No. 24-2034), Kostelanetz argues that liabilities consisting of an erroneous refund of payments of interest on unpaid taxes for 1981 and 1982 and the interest accruing on erroneous refund liabilities constitute a tax eligible for innocent spouse relief under IRC § 6015(f).
Law360, which reported on LaRosa’s appeal, quoted Caroline as saying that the Tax Court’s ruling “to categorically exclude from equitable relief those liabilities arising from an erroneous refund of interest on income tax liabilities is contrary to principles of statutory construction, conflates substantive tax liabilities with tax procedure, and belies the legislative history and congressional intent of the expanded innocent spouse relief provisions.”
“We hope that the Fourth Circuit will reverse and remand this case for a decision on the merits of Mrs. LaRosa’s claim,” Caroline said.
The underlying issue in the case is one of first impression (i.e., a novel or untested legal argument and/or untested area of law).
The full Law360 story can be found here.
About Caroline
Caroline is a former Acting Assistant Attorney General of the U.S. Department of Justice’s Tax Division and a founder of Kostelanetz’s Washington, D.C. office. Her practice focuses on federal, state, and cross-border civil tax controversies, including representation in sensitive audits, voluntary disclosures, administrative appeals, and litigation, providing tax advice, conducting internal investigations, and representing individuals and entities in criminal tax investigations and prosecutions. She also serves as a consulting and testifying expert witness and an independent mediator in tax disputes.
About Andy
Andy focuses his practice on tax controversies, both civil and criminal, at all stages of the administrative and judicial process. A former U.S. Department of Justice attorney, he has argued approximately 50 tax cases in the U.S. courts of appeals. He is a Forbes contributing columnist on tax controversy and tax policy and a frequent writer and speaker on tax issues. He is also a fellow of the American College of Tax Counsel.
About Michael
Mike focuses his practice on civil and criminal tax controversy matters. Prior to joining the firm, he served for two years as a judicial law clerk for Judge Joseph W. Nega of the United States Tax Court. Mike received his J.D. and LL.M. in taxation from Boston University School of Law.
