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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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Last modified: May 25, 2011