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law. The Commissioner “determines that there is a deficiency” in
a document known as a “notice of deficiency” that the
Commissioner sends or issues to the taxpayer. See sec. 6212(a).
An “assessment” is the procedure by which the Commissioner
officially records a tax liability. See sec. 6203. However,
there are limitations on the authority of the Commissioner to
assess a “deficiency” that the Commissioner has “determined”.
See, e.g., secs. 6213, 6215. An “assessment” by the Commissioner
is required before the Commissioner may proceed to collect a tax
liability. See sec. 6502.
18(...continued)
examined. * * * Congress did not intend that taxpayers
be prohibited from seeking innocent spouse relief until
after an assessment has been made; Congress intended
the proper time to raise and have the IRS consider a
claim to be at the same point where a deficiency is
being considered and asserted by the IRS. This is the
least disruptive for both the taxpayer and the IRS
since it allows both to focus on the innocent spouse
issue while also focusing on the items that might cause
a deficiency. * * * The bill clarifies the intended
time by permitting the election under [section 6015]
(b) and (c) to be made at any point after a deficiency
has been asserted by the IRS. A deficiency is
considered to have been asserted by the IRS at the time
the IRS states that additional taxes may be owed. Most
commonly, this occurs during the Examination process.
It does not require an assessment to have been made,
nor does it require the exhaustion of administrative
remedies in order for a taxpayer to be permitted to
request innocent spouse relief.
H. Conf. Rept. 106-1033, at 1022-1023 (2000), 2000-3 C.B. 304,
352-353.
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