- 6 - (B) on such return there is an understatement of tax attributable to erroneous items of 1 individual filing the joint return; (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 of 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. Our jurisdiction to review petitioner’s claim for relief is conferred by section 6015(e), which allows a spouse who has requested relief from joint and several liability to contest the Commissioner’s denial of relief by filing a timely petition in this Court. There is no dispute that petitioner satisfies subparagraphs (A) and (E) of section 6015(b)(1). Petitioner filed joint returns for 1985 and 1986 with Mr. Aranda, as required by section 6015(b)(1)(A), and made a qualifying election on Form 8857 for taxable years 1985 and 1986, as required by section 6015(b)(1)(E). However, respondent contends that petitioner hasPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011