- 5 -
Discussion
Spouses who file a joint Federal income tax return generally
are jointly and severally liable for the payment of the tax shown
on the return or found to be owing. Sec. 6013(d)(3); Cheshire v.
Commissioner, 115 T.C. 183, 188 (2000), affd. 282 F.3d 326 (5th
Cir. 2002) (“Cheshire I”). However, relief from joint and
several liability is available to certain taxpayers under section
6015. There are three avenues for relief under this section--
section 6015(b), section 6015(c), and section 6015(f).
Section 6015(b) Relief
Section 6015(b) provides full or apportioned relief from
joint and several liability for an understatement of tax on a
joint return if, among other requirements, the taxpayer
requesting relief “establishes that in signing the return he or
she did not know, and had no reason to know” of the
understatement of tax on the return. Sec. 6015(b)(1)(C), (b)(2).
Generally, the spouse seeking relief has reason to know of the
understatement if she has reason to know of the transaction that
gave rise to the understatement. Jonson v. Commissioner, 118
T.C. 106, 115 (2002). However, the Court of Appeals for the
Seventh Circuit3 has adopted what has been labeled a more lenient
3But for the provisions of sec. 7463(b), the decision in
this case would be appealable to the U.S. Court of Appeals for
the Seventh Circuit. See sec. 7482(b)(1)(A). This Court
generally applies the law in a manner consistent with the
(continued...)
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011