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The conferees do not intend to limit the use of
the Secretary’s authority to provide equitable relief
to situations where tax is shown on a return but not
paid. The conferees intend that such authority be used
where, taking into account all the facts and
circumstances, it is inequitable to hold an individual
liable for all or part of any unpaid tax or deficiency
arising from a joint return. The conferees intend that
relief be available where there is both an
understatement and an underpayment of tax.
Procedural rules
The conference agreement follows the House bill
and the Senate amendment with respect to procedural
rules, including the jurisdiction of the Tax Court to
review matters relating to this provision. * * *
Effective date
The conference agreement follows the Senate
amendment. The separate liability election, expanded
innocent spouse relief and authority to provide
equitable relief all apply to liabilities for tax
arising after the date of enactment, as well as any
liability for tax arising on or before the date of
enactment that remains unpaid on the date of enactment.
* * * [H. Conf. Rept. 105-599, supra at 251-255,
1998-3 C.B. at 1005-1009; footnote omitted.]
In sum, the conference report highlights that Congress
intended that three distinct types of relief from joint liability
be available under section 6015; namely, the modified innocent
spouse relief provided in the House bill, the separate liability
election provided in the Senate amendment, and the equitable
relief provided in the conference agreement.9 The conference
report also highlights that the Court’s jurisdiction to review
9 The proposed income tax regulations under sec. 6015 also
highlight this point. See 66 Fed. Reg. 3888 (Jan. 17, 2001).
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