Haag v. Shulman
683 F.3d 26
1st Cir.2012Background
- US sued Haag and husband to reduce tax liabilities to judgment totaling $1,620,224 for years 1985–1991, 1993–2001.
- Haag asserted innocent spouse relief under 26 U.S.C. § 6015(b)(1)-(2), (f) as an affirmative defense.
- In 2004 Haag and husband filed a separate CDP action; district court consolidated those actions in December 2004.
- District court in 2006 held Haag’s § 6015 claims untimely under a two-year regulatory deadline beginning with the IRS’s first collection action in 1999.
- Haag I (2007) affirmed the district court’s ruling on the CDP claim; the innocent-spouse issue was treated as untimely.
- Haag II (2009) affirmed that prior final judgments barred Haag’s § 6015 claims by res judicata; Haag later relied on Lantz I (2009) to seek relief under § 6015(f) and § 6015(g)(2) for an intervening change in law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether res judicata bars Haag’s § 6015(f) claim. | Haag argues intervening law should reopen relief. | Shulman argues prior final judgments preclude relief. | Yes; res judicata bars. |
| Whether § 6015(g)(2) exceptions permit lifting res judicata. | Haag contends not-issue and lack of meaningful participation should lift bar. | Agency argues conditions not met. | No; she did not satisfy either factor. |
| Whether intervening changes in law (Lantz I/II) affect the outcome. | Haag relies on Lantz I/II to invalidate the two-year limit. | Court should apply pre-Lantz law for res judicata. | Not controlling; not addressed on the merits; res judicata governs. |
Key Cases Cited
- Lantz v. Commissioner, 132 T.C. 131 (Tax Court 2009) (invalidated two-year deadline for § 6015(f) claims (Lantz I))
- Lantz v. Commissioner, 607 F.3d 479 (7th Cir. 2010) (reversed Tax Court on deadline issue (Lantz II))
- Haag v. United States, 589 F.3d 43 (1st Cir. 2009) (Haag II; res judicata barred earlier claims)
- Jones v. Comm'r, 642 F.3d 459 (4th Cir. 2011) (two-year deadline regulation upheld)
- Mannella v. Comm'r, 631 F.3d 115 (3d Cir. 2011) (absence of deadline in § 6015(f) not preclude regulation)
- Sunnen, 333 U.S. 591 () (tax liability year-by-year origin of a liability; res judicata per-year)
- Harbin v. Comm'r, 137 T.C. 93 (2011) (meaningful participation factors)