Part III. Administrative, Procedural, and Miscellaneous

application of § 6015(c) no later than two years after the date of the first collection activity after July 22, 1998, with respect to the requesting spouse; and (4) the deficiency remains unpaid. Relief under § 6015(c) is subject to several limitations. First, an election under § 6015(c) is invalid if the Service establishes that assets were transferred between the requesting spouse and the nonrequesting spouse as part of a fraudulent scheme (and § 6013(d)(3) shall apply to the joint return). Second, relief is not available to the extent that the Secretary demonstrates that the requesting spouse had actual knowledge of an item giving rise to a deficiency at the time the return was signed. Third, relief will only be available to the extent that the liability exceeds the value of any disqualified assets (as defined in § 6015(c)(4)(B)) transferred to the requesting spouse by the nonrequesting spouse.

.05 Section 6015 provides for relief only from joint and several liability arising from a joint return. If an individual signs a joint return under duress, the signature is not valid and a joint return is not made. The individual is not jointly and severally liable for liabilities arising from such a return. Therefore, § 6015 does not apply.

.06 Under both §§ 6015(b) and 6015(c), relief is available only from proposed or assessed deficiencies. Neither § 6015(b) nor § 6015(c) authorizes relief from liabilities that were properly reported on the return but not paid. However, equitable relief under § 6015(f) or 66(c) may be available for such liabilities. The legislative history of the RRA indicates that Congress intended for the Secretary to exercise discretion in granting equitable relief when a requesting spouse “does not know, and had no reason to know, that funds intended for the payment of tax were instead taken by the other spouse for such other spouse’s benefit.” H.R. Conf. Rep. No. 599, 105 ^th Cong., 2d Sess. 254 (1998). Congress also intended for the Secretary to exercise the equitable relief authority under § 6015(f) in other situations where, “taking into account all the facts and circumstances, it is inequitable to hold an individual liable for all or part of any unpaid tax or deficiency arising from a joint return.” Id .

26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability. (Also Part I, sections 66, 6015.)

Rev. Proc. 2000–15