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joint Federal income tax return. They reported on that return
the IRA disbursement of $14,363. In computing the tax due they
included the early distribution additional tax under section
72(t). The return showed that they owed $2,979. That amount was
not paid when the return was filed.
At the time of the divorce petitioner and intervenor owned a
residence. Originally the residence was to be sold, and each was
to receive half of the proceeds. Subsequently, the residence was
ordered deeded to petitioner, and petitioner was ordered to
“continue to pay the joint debts”. Petitioner was represented by
an attorney during these proceedings. The house was eventually
sold in 2000, and petitioner received approximately $20,000.
Petitioner filed individual 1998 and 1999 Federal income tax
returns. Each return showed that she was due a refund.
Respondent applied these overpayments to the amount not paid on
the 1997 tax liability.
Discussion
A requesting spouse may elect relief from joint and several
liability under section 6015. There are three types of relief
available: (1) Section 6015(b)(1) provides full relief from
joint and several liability; (2) section 6015(c) provides
separate tax liability available to divorced or separated
taxpayers; and (3) section 6015(f) provides equitable relief from
joint and several liability in certain circumstances if section
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Last modified: May 25, 2011