Gwendolyn A. Ewing - Page 48




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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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