- 7 - 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 thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011