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Discussion
A married couple can choose to file their Federal tax return
jointly, but if they do, both are then responsible for the
return’s accuracy and both are jointly and severally liable for
the entire tax due. Sec. 6013(d)(3); Butler v. Commissioner, 114
T.C. 276, 282 (2000). This can lead to harsh results, especially
when one spouse hides information from the other, so Congress
enacted section 6015, which directs the Commissioner to relieve
qualifying “innocent spouses” from that liability. Sec. 6015(a).
An innocent spouse may seek either (1) relief from liability
under section 6015(b) if he can show that he was justifiably
ignorant of unreported income or inflated deductions, or (2) have
his tax liability allocated between himself and an estranged or
former spouse under section 6015(c). Billings, however, looks to
section 6015(f) for relief. Subsection (f) relief is available
only to a spouse who is ineligible for relief under subsections
(b) and (c) and who shows that "taking into account all the facts
and circumstances, it is inequitable to hold [him] liable for any
unpaid tax or any deficiency (or any portion of either).”
Billings and the Commissioner stipulated that he did not
qualify for relief under either section 6015(b) or (c) because no
deficiency was ever asserted against him and his wife. They were
right to do so, because both those subsections require a
deficiency as a condition of relief. See, e.g., Block v.
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Last modified: May 25, 2011