Eleanor Simon - Page 13

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               is attributable solely to the underpayment of tax upon                 
               filing the tax return, plus interest and penalties.                    
               IRC � 6015(f)                                                          
               IRC � 6015(f) provides the IRS with the discretion to                  
               grant equitable relief where a taxpayer is not entitled                
               to relief under either IRC � 6015(b) or (c).  Equitable                
               relief under IRC section 6015(f), however, is subject                  
               to two limitations in accordance with - Revenue Proce-                 
               dure 2000-15, 2000-1 CB 447, Section 4.02:                             
                    If the return has been adjusted to reflect an                     
                    understatement, relief will be available only to                  
                    the extent of the liability shown on the return                   
                    prior to the adjustment, or                                       
                    If no adjustment is made, relief is limited to the                
                    extent the unpaid liability is due to the non-                    
                    requesting spouse.                                                
               Explanation of IRC � 6015(f)                                           
               In Revenue Procedure 2000-15, the IRS delineates quali-                
               fications necessary to be granted equitable relief                     
               under IRC � 6015(f).  Threshold eligibility qualifica-                 
               tions are:                                                             
                    Joint return filed                                                
                    Timely filed claim for relief                                     
                    Relief not available under other sections of the                  
                    There was no transfer of assets between spouses as                
                    part of a fraudulent scheme                                       
                    Return was not filed with fraudulent intent on the                
                    part of the requesting spouse                                     
                    Liability remains unpaid                                          
                    No disqualified assets transferred to requesting                  
                    spouse.  If so, relief only available to the ex-                  
                    tent that the liability exceeds the value of the                  
                    transferred assets.                                               
               Nonetheless, under section 4.03 of Revenue Procedure                   
               2000-15, relief is still possible for requesting                       
               spouses who meet the threshold eligibility requirements                
               above, but do not otherwise qualify for relief under                   
               any other sections.  This last relief provision is only                
               available where it would be inequitable to hold the                    
               requesting spouse liable for the understatement.  Under                

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