- 5 -
attributable to certain erroneous items on a return; (2) section
6015(c) provides relief for a portion of an understatement of tax
to taxpayers who are separated or divorced; and (3) section
6015(f) more broadly confers on the Secretary discretion to grant
equitable relief to 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 attributable to erroneous
items of the other spouse if the taxpayer establishes that in
signing the return he “did not know, and had no reason to know”
of the understatement. Sec. 6015(b)(1)(C), (2).
At the outset, we note that petitioner testified in detail
with respect to the Schedule C business activity reported on the
2001 joint return. With respect to the remaining items that
respondent disallowed in the notice (Schedules C and E expenses,
certain Schedule A deductions), petitioner testified that he was
aware of all of the items listed as expenses or claimed as
itemized deductions on the 2001 joint return.
Petitioner argues that he is entitled to relief under
section 6015 because Ms. Payton failed to disclose to him income
received from all of the couple’s Schedule C business activities
in 2001, and that he, in turn, did not report that income on
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: November 10, 2007