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Pub. L. 100-647, 102 Stat. 3685-3686 (transitional rule).5
5
The transitional rule provides as follows:
Sec. 6004. TREATMENT OF CERTAIN INNOCENT SPOUSES
Subsection (c) of section 424 of the Tax Reform
Act of 1984 (relating to innocent spouse relieved of
liability in certain cases) is amended by adding at the
end thereof the following new paragraph:
"(3) Transitional Rule.--If--
"(A) a joint return under section 6013 of the
Internal Revenue Code of 1954 was filed before January
1, 1985,
"(B) on such return there is an understatement (as
defined in section 6661(b)(2)(A) of such Code) which is
attributable to disallowed deductions attributable to
activities of one spouse,
"(C) the amount of such disallowed deductions
exceeds the taxable income shown on such return,
"(D) without regard to any determination before
October 21, 1988, the other spouse establishes that in
signing the return he or she did not know, and had no
reason to know, that there was such an understatement,
and
"(E) the marriage between such spouses terminated
and immediately after such termination the net worth of
the other spouse was less than $10,000,
notwithstanding any law or rule of law (including res
judicata), the other spouse shall be relieved of
liability for tax (including interest, penalties, and
other amounts) for such taxable year to the extent such
liability is attributable to such understatement, and,
to the extent the liability so attributable has been
collected from such other spouse, it shall be refunded
or credited to such other spouse. No credit or refund
shall be made under the preceding sentence unless claim
therefor has been submitted to the Secretary of the
Treasury or his delegate before the date 1 year after
(continued...)
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