Sybil M. Smith - Page 5




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                              (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.                                   
                         (3) Understatement.--For purposes of this                    
                    subsection, the term “understatement” has the                     
                    meaning given to such term by section                             
                    6662(d)(2)(A).                                                    
                    (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                
                    of this subsection, the individual’s liability for                
                    any deficiency which is assessed with respect to                  
                    the return shall not exceed the portion of such                   
                    deficiency properly allocable to the individual                   
                    under section (d).                                                
                         (2) Burden of proof.--Except as provided in                  
                    subparagraph (A)(ii) or (C) of paragraph (3), each                
                    individual who elects the application of this                     





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