Michael B. Butler and Jean Butler - Page 11




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                         (C) the other individual filing the joint                    
                    return establishes that in signing the return he or she           
                    did not know, and had no reason to know, that there was           
                    such understatement;                                              
                         (D) taking into account all the facts and                    
                    circumstances, it is inequitable to hold the other                
                    individual liable for the deficiency in tax for such              
                    taxable year attributable to such understatement; and             
                         (E) the other individual elects (in such form as             
                    the Secretary may prescribe) the benefits of this                 
                    subsection not later than the date which is 2 years               
                    after the date the Secretary has begun collection                 
                    activities with respect to the individual making the              
                    election,                                                         
               then the other individual 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.                                   
                    (2) Apportionment of relief.--If an individual who, but           
               for paragraph (1)(C), would be relieved of liability under             
               paragraph (1), establishes that in signing the return such             
               individual did not know, and had no reason to know, the                
               extent of such understatement, then such individual shall be           
               relieved of liability for tax (including interest,                     
               penalties, and other amounts) for such taxable year to the             
               extent that such liability is attributable to the portion of           
               such understatement of which such individual did not know              
               and had no reason to know.                                             
               Former section 6013(e) is, for the most part, the same as              
          new section 6015(b), but there are important differences.  For              
          example, new section 6015(b)(2) explicitly provides for                     
          proportionate relief, although former section 6013(e) did not               
          have an explicit provision for such relief.  Additionally, unlike           
          former section 6013(e), which encompassed only substantial                  
          understatements attributable to grossly erroneous items, new                
          section 6015(b) encompasses any understatement.  Despite the                





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