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to grant equitable relief for taxpayers who otherwise do not
qualify for relief under either subsection (b) or (c).
A prerequisite for relief under section 6015(b) or (c) is
the existence of an “understatement of tax” or a tax deficiency.
Sec. 6015(b)(1)(B), (c)(1); Block v. Commissioner, 120 T.C. 62,
65-66 (2003). Except as otherwise provided in section 6015, the
requesting spouse bears the burden of proving that each
requirement of section 6015(b)(1) has been satisfied. Rule
142(a); Alt v. Commissioner, 119 T.C. 306, 311 (2002), affd. 101
Fed. Appx. 34 (6th Cir. 2004).
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,5 the taxpayer establishes that she “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), (2).
Where a spouse seeking relief has actual knowledge of the
underlying transaction that produced the omitted income, innocent
spouse relief is denied. Cheshire v. Commissioner, 115 T.C. 183,
192-193 (2000), affd. 282 F.3d 326 (5th Cir. 2002). The
requesting spouse has “reason to know” of the understatement of
5Neither respondent nor petitioner disputes that, in this
case, the requirements of subpars. (A), (B), and (E) of sec.
6015(b)(1) have been satisfied. The dispute is solely as to
whether petitioner meets the requirements of subpars. (C) and (D)
of sec. 6015(b)(1).
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Last modified: May 25, 2011