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The Tax Court has jurisdiction of disputes arising
from the separate liability election. For example, a
spouse who makes the separate liability election may
petition the Tax Court to determine the limits on
liability applicable under this provision. * * *
* * * * * * *
The separate liability election also applies in
situations where the tax shown on a joint return is not
paid with the return. In this case, the amount
determined under the separate liability election equals
the amount that would have been reported by the
electing spouse on a separate return. [Id. at 56-59,
1998-3 C.B. at 592-595.]
The different approaches passed by the Senate and the House
as to relief from joint liability were reconciled in conference
with the conferees adopting both the modified innocent spouse
relief provided in the House bill and the separate liability
election provided in the Senate amendment. The conferees also
agreed upon an additional form of relief that was not found in
either the House bill or the Senate amendment. The conference
agreement provided that an individual who did not qualify for
modified innocent spouse relief or the separate liability
election could still qualify for equitable relief in appropriate
situations prescribed by the Secretary. The conference report
explains the relevant parts of the conference agreement as
follows:
In general
The conference agreement follows the Senate
amendment with respect to deficiencies of a taxpayer
who is no longer married to, is legally separated from,
or has been living apart for at least 12 months from
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