Taxpayer protests the assessment of individual income tax. The issue is whether Taxpayer's return filing status is "married filing separately" or "married filing jointly."
Under IC § 6-3-4-2(d):
Where a joint return is made by husband and wife pursuant to the Internal Revenue Code, a joint return shall be made pursuant to this article. Where a joint return is filed by a husband and wife hereunder, one spouse shall have no liability for the tax imposed by this article upon the income of the other spouse.
Likewise, under IC § 6-3-4-2(e):
Where separate returns are made by husband and wife pursuant to the Internal Revenue Code, separate returns shall be made pursuant to this article.
In Taxpayer's case, Taxpayer has stated that she has raised similar issues with the Internal Revenue Service. In Taxpayer's case, the proper resolution of her filing status necessarily depends on her proper federal filing status. At this stage, the final resolution of her filing status is dependent on the federal determination. Thus, Taxpayer's liability cannot be abated at this time.
However, if the Internal Revenue Service determines that her filing status should have "married filing separately," the Department will follow the federal resolution and make any appropriate adjustments to Taxpayer's liability. Further, in the event that Taxpayer's filing status should have been "married filing jointly," Taxpayer's portion of the resulting liability will be determined under IC § 6-3-4-2(d).
