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deficiency on equitable grounds, but only if section 6015(b) and
(c) does not apply.
Under section 6015(c)(3), if spouses who filed a joint
return are no longer married or are legally separated, then the
requesting spouse may elect to limit his/her liability to the
portion of the deficiency allocated to him/her as provided in
section 6015(d). The deficiency is determined from the joint
return on the basis of the married filing joint return status
(the rate elected by the spouses when they filed the joint
return). The electing spouse generally bears the burden of proof
with respect to establishing the portion of any deficiency that
is allocable to him/her. Sec. 6015(c)(2).
The parties agree that petitioners have a deficiency in
their 1994 Federal income tax of $8,225 and are liable for an
accuracy-related penalty under section 6662(a) of $507. They
also agree that petitioner qualifies for relief under section
6015(c). The parties disagree as to the amounts of the
deficiency and the penalty for which petitioner is liable
pursuant to section 6015(d).
A. Proportionate Allocation Method
Generally the portion of the deficiency on a joint return
allocated to an individual is the amount that bears the same
ratio to the deficiency as the net amount of items taken into
account in computing the deficiency and allocable to the
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Last modified: May 25, 2011