- 8 - required to be shown on the return is computed on their combined income, expenses, and credits, and their liability for the tax is joint and several. See sec. 6013(d)(3). In 1971, Congress enacted section 6013(e) to ameliorate perceived inequities resulting from the imposition of joint and several liability in certain circumstances. See S. Rept. 91-1537 (1970), 1971-1 C.B. 606. Section 6013(e), as originally enacted, offered relief from joint and several liability only in cases involving omitted income where the spouse seeking relief could prove that he or she met the strict requirements of subsection (e). In 1984, section 6013(e) was amended to permit a spouse to seek relief from joint and several liability in cases where an understatement of tax resulted from erroneous deductions claimed on a joint tax return. See Deficit Reduction Act of 1984, Pub. L. 98-369, sec. 424, 98 Stat. 494, 801; H. Conf. Rept. 98-861, at 1119 (1984), 1984-3 C.B. (Vol. 2) 1, 373. Section 6013(e)(1), as amended, provided that a spouse could be relieved of joint and several liability if the spouse proved that: (1) A joint return was filed; (2) the return contained a substantial understatement of tax attributable to grossly erroneous items of the other spouse; (3) in signing the return, the spouse seeking relief did not know, and had no reason to know, of the substantial understatement; and (4) under the circumstances it would bePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011