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Restructuring and Reform Act of 1998, Pub. L. 105-206, sec.
3201(g), 112 Stat. 740.
Section 6015 provides three avenues for relief to a taxpayer
who has filed a joint return: (1) Section 6015(b) allows relief
for understatements of tax attributable to certain erroneous
items on the return; (2) section 6015(c) provides relief for a
portion of an understatement of tax for taxpayers who are
separated or divorced; and (3) section 6015(f) more broadly
confers on the Secretary discretion to grant equitable relief for
taxpayers who otherwise do not qualify under section 6015(b) or
(c).
The first avenue for relief is section 6015(b). Under
section 6015(b), the Court may grant a taxpayer full or
apportioned relief from joint and several liability for an
understatement of tax on a joint return if, among other
requirements,3 the taxpayer establishes that he “did not know,
and had no reason to know” that the other spouse understated that
spouse’s tax liability on the return. Sec. 6015(b)(1)(C),
(b)(2).
Intervenor had a Merrill Lynch Account with Chevron but
transferred the balance into a separate IRA when he left Chevron.
3Neither respondent nor intervenor dispute that, in this
case, the requirements of subparagraphs (A), (B), and (E) of sec.
6015(b)(1) have been satisfied. The dispute is whether
petitioner meets the requirements of subparagraphs (C) and (D) of
sec. 6015(b)(1).
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Last modified: May 25, 2011