Wayne Payne and Dorene J. Payne - Page 21

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          to hold that spouse liable for any deficiency or unpaid tax (or             
          any portion of either) and that spouse is not eligible for relief           
          under section 6015(b) or (c).  See sec. 6015(f).                            
               Relief under section 6015(c) requires that the spouse                  
          requesting relief be no longer married to, be legally separated             
          from, or not be a member of the same household as (for any part             
          of the 12-month period ending on the date the election for relief           
          was filed), the individual with whom the joint return was filed.            
          Since Mr. and Mrs. Payne are not divorced, legally separated, or            
          living separately, Mrs. Payne is ineligible for relief under                
          section 6015(c).                                                            
               The requesting spouse must fulfill five requirements in                
          order to receive relief under section 6015(b):  (1) A joint                 
          return has been made for a taxable year; (2) on such return there           
          is an understatement of tax attributable to erroneous items of              
          the nonrequesting spouse; (3) the requesting spouse establishes             
          that in signing the return he or she did not know, and had no               
          reason to know, that there was such understatement; (4) taking              
          into account all the facts and circumstances, it is inequitable             
          to hold the requesting spouse liable for the deficiency in tax              
          for such year attributable to the understatement; and (5) the               
          requesting spouse elected the benefits of section 6015(b) not               
          later than the date which is 2 years after the date the                     
          Commissioner has begun collection activities with respect to the            

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Last modified: May 25, 2011