- 3 - joint Federal income tax return. They reported on that return the IRA disbursement of $14,363. In computing the tax due they included the early distribution additional tax under section 72(t). The return showed that they owed $2,979. That amount was not paid when the return was filed. At the time of the divorce petitioner and intervenor owned a residence. Originally the residence was to be sold, and each was to receive half of the proceeds. Subsequently, the residence was ordered deeded to petitioner, and petitioner was ordered to “continue to pay the joint debts”. Petitioner was represented by an attorney during these proceedings. The house was eventually sold in 2000, and petitioner received approximately $20,000. Petitioner filed individual 1998 and 1999 Federal income tax returns. Each return showed that she was due a refund. Respondent applied these overpayments to the amount not paid on the 1997 tax liability. Discussion A requesting spouse may elect relief from joint and several liability under section 6015. There are three types of relief available: (1) Section 6015(b)(1) provides full relief from joint and several liability; (2) section 6015(c) provides separate tax liability available to divorced or separated taxpayers; and (3) section 6015(f) provides equitable relief from joint and several liability in certain circumstances if sectionPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011