Factors Innocent Spouse Relief §6015(b) Allocation of Liability §6015(c) Equitable Relief §6015(f) Equitable Relief Community Property States §66(c) Type of Returns Joint Joint Joint Married filing separate Type of Liability Deficiency Deficiency Deficiency or underpayment Deficiency or underpayment Special Requirements Relief under §6015(b) and §6015(c) not available Refunds Subject to Internal Revenue Code 6511 Refunds available No refunds Refunds available for separate payments made solely by the Requesting Spouse and for payments where the Requesting Spouse provided the funds for joint payments. Refunds available for separate payments made solely by the Requesting Spouse and for payments where the Requesting Spouse provided the funds for joint payments. Marital Status Marital status considered as an equitable factor Must be divorced, widowed; legally separated; OR not living together for at least 12 months prior to the election Marital status considered as an equitable factor Marital status considered as an equitable factor Knowledge TP must establish had no knowledge OR reason to know IRS must establish TP had actual knowledge of deficiency items Knowledge considered as an equitable factor Knowledge considered as an equitable factor Equity Inequitable to hold TP liable: consider all facts & circumstances Inequitable to hold TP liable: consider all facts & circumstances Inequitable to hold TP liable: consider all facts & circumstances Required Factors Streamlined Determinations Relief will be granted if all of the following conditions are met: No longer married, legally separated, OR living together for 12 months prior to request No knowledge or reason to know when return signed; knowledge can be overcome by factors of abuse or financial control TP will suffer economic hardship if relief not granted Relief will be granted if all of the following conditions are met: No longer married, legally separated, OR living together for 12 months prior to request No knowledge or reason to know when return signed; knowledge can be overcome by factors of abuse or financial control TP will suffer economic hardship if relief not granted Equitable Relief Factors (not all inclusive) Factors can be For Relief, Against Relief, or Neutral: Marital status (same as 6015(c)) Economic Hardship (defined in Regs. §301.6343-1(b)(4)) Non requesting spouse's legal requirement to pay the liability No knowledge or reason to know (that liability would not be paid (for underpayment) or of item (for deficiency) Significant Benefit Compliance with Income Tax Laws Abuse (but not duress) Mental or physical health Any other facts or circumstances that may weigh for or against relief Factors can be For Relief, Against Relief, or Neutral: Marital status (same as 6015(c)) Economic Hardship (defined in Regs. §301.6343-1(b)(4)) Non requesting spouse's legal requirement to pay the liability No knowledge or reason to know (that liability would not be paid (for underpayment) or of item (for deficiency) Significant Benefit Compliance with Income Tax Laws Abuse (but not duress) Mental or physical health Any other facts or circumstances that may weigh for or against relief Fraud Fraud is a consideration in equity determination Election invalid if IRS shows TP transferred assets as part of a fraudulent scheme Relief not available if Fraudulent return or Assets transferred as part of fraudulent scheme Relief not available if Fraudulent return or Assets transferred as part of fraudulent scheme Disqualified Assets Transferred for Avoidance of Tax or Payment of Tax Transfer of disqualified assets is a consideration in equity determination Amount of allocation is increased by value of disqualified assets Relief not available to extent of value of any disqualified assets Relief not available to extent of value of any disqualified assets Time for Filing 2 years from 1st collection activity against the RS after 7/22/98 2 years from 1st collection activity against the RS after 7/22/98 Exception for equitable relief Exception for equitable relief Consideration in Courts Tax Court; if full-paid, District court or Court of Federal Claims Tax Court Tax Court review of IRS's possible abuse of discretion Tax Court review if part of deficiency proceedings or under Collection Due Process proceedings Related Topics Tax Information for Innocent Spouses
