Cheryl McKnight - Page 17

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               Relief under section 6015(c) generally is limited to the               
          portion of a tax deficiency that would be allocated to the                  
          nonrequesting spouse if separate returns were filed.  Sec.                  
          6015(c)(1), (c)(3), (d).                                                    
               Under section 6015(f), so called “equitable” relief from               
          joint liability may be available for tax deficiencies with                  
          respect to which section 6015(b) and (c) relief has been denied             
          and for underpayments of Federal income taxes reported on Federal           
          income tax returns.                                                         
               Equitable relief under section 6015(f) from joint liability            
          may be available where the facts and circumstances indicate that            
          it would be inequitable to hold the requesting spouse liable for            
          the tax underpayment or the tax deficiency.  Sec. 6015(f)(1).               
               The relief available under section 6015(f) generally is                
          limited further to the portion of a tax underpayment or                     
          deficiency attributable to an item of the nonrequesting spouse.             
          Rev. Proc. 2003-61, sec. 4.01(7), 2003-2 C.B. at 297.                       
               Under Revenue Procedure 2003-61, section 4.01(7)(b), an                
          exception is provided to the above limitation denying section               
          6015(f) equitable relief from the portion of a tax liability                
          attributable to an item of the requesting spouse where the                  
          requesting spouse establishes that her ownership of the assets              
          producing the income was only nominal.                                      

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Last modified: May 25, 2011