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The Court must decide whether respondent abused his
discretion in denying section 6015(f) relief with respect to an
amount of tax reported on petitioner's 1994 joint return but not
paid. The Court reviews respondent's determination for abuse of
discretion, Butler v. Commissioner, 114 T.C. 276 (2000), and
holds that respondent did not abuse his discretion and that his
determination was not arbitrary.
As a general rule, spouses filing joint Federal income tax
returns are jointly and severally liable for all taxes due. Sec.
6013(d)(3); Cheshire v. Commissioner, 115 T.C. 183, 188 (2000),
affd. 282 F.3d 326 (5th Cir. 2002). Under section 6015, however,
certain taxpayers are entitled to relief from joint and several
liability.
There are three avenues for relief from joint liability
under section 6015. Section 6015(b) provides relief with respect
to understatements of tax attributable to certain erroneous items
on the return. Section 6015(c) provides relief for a portion of
an understatement of tax for taxpayers who are separated or
divorced. Section 6015(f) confers upon the Secretary discretion
to grant equitable relief for taxpayers who otherwise do not
qualify for relief under section 6015(b) or (c).
Petitioner requested relief from joint liability under
section 6015 for the payment of the tax reported on the 1994
joint return that was unpaid when the return was filed.
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