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B. Section 6015(c)
Under section 6015(c)(3), if the requesting spouse is no
longer married to,11 or is legally separated from, the spouse
with whom she filed the joint return, the requesting spouse may
elect to limit her liability for the deficiency as provided for
in section 6015(d).12 The election must be made no later than 2
years after the Secretary has begun collection activities with
respect to the electing spouse.13 Sec. 6015(c)(3)(B).
In general, section 6015(d) provides that any item giving
rise to a deficiency on a joint return shall be allocated to each
spouse as though they had filed separate returns, and the
requesting spouse shall be liable only for her proportionate
share of the deficiency that results from such allocation. Sec.
6015(d)(1), (3)(A). To the extent that the item giving rise to
11A requesting spouse is no longer married if she is
widowed. Rosenthal v. Commissioner, T.C. Memo. 2004-89.
12A taxpayer is ineligible to elect sec. 6015(c) if the
Secretary demonstrates that (1) assets were transferred between
spouses filing a joint return as part of a fraudulent scheme to
avoid tax or (2) the electing spouse had actual knowledge, when
signing the return, of any item giving rise to a deficiency that
is allocable to the other spouse. Sec. 6015(c)(3)(A)(ii), (C).
Respondent concedes that he is unable to show that either of
those circumstances existed in this case.
13Petitioner originally did not request relief under sec.
6015(c) because she filed Form 8857, Request for Innocent Spouse
Relief (And Separation of Liability and Equitable Relief), before
Mr. Capehart’s death. However, respondent did not require
petitioner to file another Form 8857 because respondent’s
determination with respect to her initial request was not final
when Mr. Capehart died.
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