- 12 -
(B) on such return there is an
understatement of tax attributable to
erroneous items of one 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 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.
Failure to meet any of the section 6015(b)(1) requirements
precludes the granting of relief. In the instant cases, the
parties dispute the following two requirements: (1) Whether
petitioner knew or had reason to know of the understatements when
signing the joint returns for the tax years at issue, and (2)
whether it is inequitable to hold petitioner liable for the tax
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011