- 7 - returns jointly. Sec. 6013(a).1 If they do, both are 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, and so section 6015 lets a spouse ask for relief from joint and several liability on three grounds. Section 6015(b) lets a spouse seek relief if he can show that he neither knew, nor had reason to know, of an understatement on the return; section 6015(c) lets divorced or separated spouses split their tax liability. Both these provisions, however, require that the liability in question arise from a “deficiency,” meaning that a couple has underreported their taxable income. In tax years 1986 through 1992, Manns did understate their joint income. Motsko knew nothing about it, and the Commissioner granted him relief for those years under section 6015(b). Tax years 1993 and 1996 are a different story. For those years, there was no deficiency--the problem Motsko faced was that part of the tax due went unpaid. That left him able to seek relief only under section 6015(f), because that section allows relief where “it is inequitable to hold the individual liable for any unpaid tax or any deficiency (or any portion of either).” 1 Unless otherwise indicated, all section references are to the Internal Revenue Code as in effect for the year at issue.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011