The Fourth Circuit Court of Appeals has held in Octavia Jones v. Commissioner, No. 10-1985 (June 13, 2011) that the 2 year statute of limitations regulation asserted by the IRS in innocent spouse cases is valid for purposes of innnocent spouse equitable relief and that innocent spouse claims asserted after the 2 year period of initial collection activity by the IRS are time barred. This reflects a split in the Circuits and the issue may be ripe for resolution by the U.S. Supreme Court.
For a copy of the case, please contact Curtis Elliott at Culp Elliott & Carpenter, PLLC, Charlotte, NC. Our web site is http:www.ceclaw.com