- 39 -
innocent spouse will not qualify for relief under section 6015(c)
if he or she had actual knowledge that any item on the return was
incorrect. The conference report states that:
if the IRS proves that the electing spouse had actual
knowledge that any item on a return is incorrect, the
election will not apply to the extent any deficiency is
attributable to such item. [Emphasis added.]
H. Conf. Rept. 105-599, at 253 (1998). Thus, the legislative
history unequivocally shows that Congress intended to require the
Commissioner to prove that the putative innocent spouse knew that
his or her tax return was incorrect.3
The passage from the legislative history on which the majority
relies relates to the allocation of items between the two spouses
when one qualifies for the separate liability election. See
majority op. at 21. It does not describe the knowledge requirement,
interpretation of which is at issue here, and thus does not address
this issue. Further, statutory language in the allocation rule
undermines the majority’s position. Section 6015(d)(3)(A) provides
that:
(A) In general.–Except as provided in paragraphs (4)
and (5), any item giving rise to a deficiency on a joint
return shall be allocated to individuals filing the
3 Contrary to the suggestion that this language might
merely be an example of a situation where relief is not
warranted, the above-quoted passage from the conference report
and the identical language from the Finance Committee report are
explanations of the statutory rule, not examples. The Finance
Committee report and the conference report have a specific way to
present examples. First, they state a general point; then they
state “For example, * * *” to illustrate the point. This pattern
is repeated seven times in the Finance Committee’s explanation of
sec. 6015 and seven times in the conference report’s explanation
of sec. 6015.
Page: Previous 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 NextLast modified: May 25, 2011