                        T.C. Memo. 2007-220



                      UNITED STATES TAX COURT



                JUDITH E. SCHMICK, Petitioner v.
          COMMISSIONER OF INTERNAL REVENUE, Respondent



     Docket No. 15846-06.             Filed August 8, 2007.



     Judith E. Schmick, pro se.

     Julie A. Jebe, for respondent.


                        MEMORANDUM OPINION


     RUWE, Judge:   On August 15, 2006, petitioner timely filed a

petition under section 6015(e)1 seeking review of respondent’s


     1
       Unless otherwise indicated, all section references are to
the Internal Revenue Code, as amended, and all Rule references
are to the Tax Court Rules of Practice and Procedure. The Tax
Relief and Health Care Act of 2006, Pub. L. 109-432, div. C, sec.
408, 120 Stat. 3061, amended sec. 6015(e)(1) and applies to all
liabilities for taxes arising or remaining unpaid on or after
                                                   (continued...)
                                  - 2 -

final determination denying her relief from joint and several

liability under section 6015 for the tax years 1997, 1999, 2000,

2001, and 2002.   On October 11, 2006, petitioner filed a Motion

to Change Case to a “Small Tax Case”.       Section 7463 generally

allows disputes in small tax cases to be decided in proceedings

in which the normally applicable procedural and evidentiary rules

are relaxed.   See Rule 174(b).    Section 7463(f)(1) authorizes use

of the small tax case procedures “in the case of * * * a petition

to the Tax Court under section 6015(e) in which the amount of

relief sought does not exceed $50,000”.       By Order dated November

30, 2006, this Court directed petitioner to file, on or before

December 21, 2006, a supplement to her motion filed October 11,

2006, setting forth whether the amount of relief sought in this

case exceeds the $50,000 limit under section 7463(f)(1).

Petitioner failed to timely respond to the Court’s Order, and the

Court denied her Motion to Change Case to a “Small Tax Case” on

January 12, 2007.

     On February 8, 2007, petitioner filed another Motion to

Change Case to a “Small Tax Case”.        Petitioner attached a copy of

Form 8857, Request for Innocent Spouse Relief, that she submitted

on February 24, 2006.   On the Form 8857, she explained:      “We are

asking for relief for the following amounts” listed as follows:


     1
      (...continued)
Dec. 20, 2006, the date of the enactment, and thus it applies
here.
                                  - 3 -

                           Year            Amount
                           1997         $22,141.54
                           1999           12,025.26
                           2000           11,468.46
                           2001            6,673.95
                           2002            7,027.12
                            Total         59,336.33

Petitioner also attached IRS account transcripts for each of the

years in issue indicating that her unpaid tax liabilities

(including interest and penalties) as of January 2007 exceeded

$61,000.    Nevertheless, in her February 8, 2007, motion,

petitioner states that “Without penalties and interest the amount

in issue is $32,059.48 & does not exceed $50,000”.

     On July 24, 2007, this Court held that the amount of relief

sought for purposes of section 7463(f)(1) includes the total

amount of tax, interest, and penalties, including accrued but

unassessed interest and penalties, for which relief is sought in

the petition calculated as of the date the petition is filed.

Petrane v. Commissioner, 129 T.C. 1 (2007).           In Petrane, we

reasoned:

     interest and penalties are generally treated as tax,
     and any reference in the Internal Revenue Code to “tax”
     (with exceptions not applicable to this case) shall be
     deemed to include interest and penalties. Secs.
     6601(e)(1), 6665(a); Schwartz v. Commissioner, 128 T.C.
     at 8, table n.1.

                  *    *     *      *      *    *      *
                                 - 4 -

     A taxpayer seeking relief from joint liability is
     seeking relief from amounts that have accrued with
     regard to the liability for which relief is sought,
     regardless of whether the ministerial act of assessment
     on those amounts has occurred. Thus, for purposes of
     section 7463(f)(1), it is appropriate to include
     unassessed interest and penalties that have accrued on
     amounts for which the taxpayer seeks relief when
     determining whether the amount of relief sought exceeds
     $50,000.

Id. at __ (slip op. at 6-8).

     The record in this case shows that on the day petitioner

filed her petition, the amount of relief sought, including

interest and penalties, exceeded $50,000.       Accordingly, we will

deny petitioner’s Motion to Change Case to a “Small Tax Case”.

The proceedings in this case will continue pursuant to the

Court’s regular case procedures.

     To reflect the foregoing,

                                              An appropriate order will

                                         be issued.
