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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.
* * * * * * *
(c) Procedures To Limit Liability for Taxpayers No
Longer Married or Taxpayers Legally Separated or Not
Living Together.--
(1) In general.--Except as provided in this
subsection, if an individual who has made a joint
return for any taxable year elects the application
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