Internal Revenue Code:Sec. 6015. Relief from joint and several liability on joint return
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 61 - INFORMATION AND RETURNS
Subchapter A - Returns and Records
PART II - TAX RETURNS OR STATEMENTS
Subpart B - Income Tax Returns
Statute
Sec. 6015. Relief from joint and several liability on joint return
(a) In general
Notwithstanding section 6013(d)(3) -
(1) an individual who has made a joint return may elect to seek
relief under the procedures prescribed under subsection (b); and
(2) if such individual is eligible to elect the application of
subsection (c), such individual may, in addition to any election
under paragraph (1), elect to limit such individual's liability
for any deficiency with respect to such joint return in the
manner prescribed under subsection (c).
Any determination under this section shall be made without regard
to community property laws.
(b) Procedures for relief from liability applicable to all joint
filers
(1) In general
Under procedures prescribed by the Secretary, if -
(A) a joint return has been made for a taxable year;
(B) on such return there is an understatement of tax
attributable to erroneous items of one individual filing the
joint return;
(C) the other individual filing the joint return establishes
that in signing the return he or she did not know, and had no
reason to know, that there was such understatement;
(D) taking into account all the facts and circumstances, it
is inequitable to hold the other individual liable for the
deficiency in tax for such taxable year attributable to such
understatement; and
(E) the other individual elects (in such form as the
Secretary may prescribe) the benefits of this subsection not
later than the date which is 2 years after the date the
Secretary has begun collection activities with respect to the
individual making the election,
then the other individual shall be relieved of liability for tax
(including interest, penalties, and other amounts) for such
taxable year to the extent such liability is attributable to such
understatement.
(2) Apportionment of relief
If an individual who, but for paragraph (1)(C), would be
relieved of liability under paragraph (1), establishes that in
signing the return such individual did not know, and had no
reason to know, the extent of such understatement, then such
individual shall be relieved of liability for tax (including
interest, penalties, and other amounts) for such taxable year to
the extent that such liability is attributable to the portion of
such understatement of which such individual did not know and had
no reason to know.
(3) Understatement
For purposes of this subsection, the term ''understatement''
has the meaning given to such term by section 6662(d)(2)(A).
(c) Procedures to limit liability for taxpayers no longer married
or taxpayers legally separated or not living together
(1) In general
Except as provided in this subsection, if an individual who has
made a joint return for any taxable year elects the application
of this subsection, the individual's liability for any deficiency
which is assessed with respect to the return shall not exceed the
portion of such deficiency properly allocable to the individual
under subsection (d).
(2) Burden of proof
Except as provided in subparagraph (A)(ii) or (C) of paragraph
(3), each individual who elects the application of this
subsection shall have the burden of proof with respect to
establishing the portion of any deficiency allocable to such
individual.
(3) Election
(A) Individuals eligible to make election
(i) In general
An individual shall only be eligible to elect the
application of this subsection if -
(I) at the time such election is filed, such individual
is no longer married to, or is legally separated from, the
individual with whom such individual filed the joint return
to which the election relates; or
(II) such individual was not a member of the same
household as the individual with whom such joint return was
filed at any time during the 12-month period ending on the
date such election is filed.
(ii) Certain taxpayers ineligible to elect
If the Secretary demonstrates that assets were transferred
between individuals filing a joint return as part of a
fraudulent scheme by such individuals, an election under this
subsection by either individual shall be invalid (and section
6013(d)(3) shall apply to the joint return).
(B) Time for election
An election under this subsection for any taxable year may be
made at any time after a deficiency for such year is asserted
but not later than 2 years after the date on which the
Secretary has begun collection activities with respect to the
individual making the election.
(C) Election not valid with respect to certain deficiencies
If the Secretary demonstrates that an individual making an
election under this subsection had actual knowledge, at the
time such individual signed the return, of any item giving rise
to a deficiency (or portion thereof) which is not allocable to
such individual under subsection (d), such election shall not
apply to such deficiency (or portion). This subparagraph shall
not apply where the individual with actual knowledge
establishes that such individual signed the return under
duress.
(4) Liability increased by reason of transfers of property to
avoid tax
(A) In general
Notwithstanding any other provision of this subsection, the
portion of the deficiency for which the individual electing the
application of this subsection is liable (without regard to
this paragraph) shall be increased by the value of any
disqualified asset transferred to the individual.
(B) Disqualified asset
For purposes of this paragraph -
(i) In general
The term ''disqualified asset'' means any property or right
to property transferred to an individual making the election
under this subsection with respect to a joint return by the
other individual filing such joint return if the principal
purpose of the transfer was the avoidance of tax or payment
of tax.
(ii) Presumption
(I) In general
For purposes of clause (i), except as provided in
subclause (II), any transfer which is made after the date
which is 1 year before the date on which the first letter
of proposed deficiency which allows the taxpayer an
opportunity for administrative review in the Internal
Revenue Service Office of Appeals is sent shall be presumed
to have as its principal purpose the avoidance of tax or
payment of tax.
(II) Exceptions
Subclause (I) shall not apply to any transfer pursuant to
a decree of divorce or separate maintenance or a written
instrument incident to such a decree or to any transfer
which an individual establishes did not have as its
principal purpose the avoidance of tax or payment of tax.
(d) Allocation of deficiency
For purposes of subsection (c) -
(1) In general
The portion of any deficiency on a joint return allocated to an
individual shall be the amount which bears the same ratio to such
deficiency as the net amount of items taken into account in
computing the deficiency and allocable to the individual under
paragraph (3) bears to the net amount of all items taken into
account in computing the deficiency.
(2) Separate treatment of certain items
If a deficiency (or portion thereof) is attributable to -
(A) the disallowance of a credit; or
(B) any tax (other than tax imposed by section 1 or 55)
required to be included with the joint return;
and such item is allocated to one individual under paragraph (3),
such deficiency (or portion) shall be allocated to such
individual. Any such item shall not be taken into account under
paragraph (1).
(3) Allocation of items giving rise to the deficiency
For purposes of this subsection -
(A) In general
Except as provided in paragraphs (4) and (5), any item giving
rise to a deficiency on a joint return shall be allocated to
individuals filing the return in the same manner as it would
have been allocated if the individuals had filed separate
returns for the taxable year.
(B) Exception where other spouse benefits
Under rules prescribed by the Secretary, an item otherwise
allocable to an individual under subparagraph (A) shall be
allocated to the other individual filing the joint return to
the extent the item gave rise to a tax benefit on the joint
return to the other individual.
(C) Exception for fraud
The Secretary may provide for an allocation of any item in a
manner not prescribed by subparagraph (A) if the Secretary
establishes that such allocation is appropriate due to fraud of
one or both individuals.
(4) Limitations on separate returns disregarded
If an item of deduction or credit is disallowed in its entirety
solely because a separate return is filed, such disallowance
shall be disregarded and the item shall be computed as if a joint
return had been filed and then allocated between the spouses
appropriately. A similar rule shall apply for purposes of
section 86.
(5) Child's liability
If the liability of a child of a taxpayer is included on a
joint return, such liability shall be disregarded in computing
the separate liability of either spouse and such liability shall
be allocated appropriately between the spouses.
(e) Petition for review by Tax Court
(1) In general
In the case of an individual against whom a deficiency has been
asserted and who elects to have subsection (b) or (c) apply, or
in the case of an individual who requests equitable relief under
subsection (f) -
(A) In general
In addition to any other remedy provided by law, the
individual may petition the Tax Court (and the Tax Court shall
have jurisdiction) to determine the appropriate relief
available to the individual under this section if such petition
is filed -
(i) at any time after the earlier of -
(I) the date the Secretary mails, by certified or
registered mail to the taxpayer's last known address,
notice of the Secretary's final determination of relief
available to the individual, or
(II) the date which is 6 months after the date such
election is filed or request is made with the Secretary, and
(ii) not later than the close of the 90th day after the
date described in clause (i)(I).
(B) Restrictions applicable to collection of assessment
(i) In general
Except as otherwise provided in section 6851 or 6861, no
levy or proceeding in court shall be made, begun, or
prosecuted against the individual making an election under
subsection (b) or (c) or requesting equitable relief
under subsection (f) for collection of any assessment to
which such election or request relates until the close of the 90th day
referred to in subparagraph (A)(ii), or, if a petition has
been filed with the Tax Court under subparagraph (A), until
the decision of the Tax Court has become final. Rules
similar to the rules of section 7485 shall apply with respect
to the collection of such assessment.
(ii) Authority to enjoin collection actions
Notwithstanding the provisions of section 7421(a), the
beginning of such levy or proceeding during the time the
prohibition under clause (i) is in force may be enjoined by a
proceeding in the proper court, including the Tax Court. The
Tax Court shall have no jurisdiction under this subparagraph
to enjoin any action or proceeding unless a timely petition
has been filed under subparagraph (A) and then only in
respect of the amount of the assessment to which the election
under subsection (b) or (c) relates or to which the request
under subsection (f) relates.
(2) Suspension of running of period of limitations
The running of the period of limitations in section 6502 on the
collection of the assessment to which the petition under
paragraph (1)(A) relates shall be suspended -
(A) for the period during which the Secretary is prohibited
by paragraph (1)(B) from collecting by levy or a proceeding in
court and for 60 days thereafter, and
(B) if a waiver under paragraph (5) is made, from the date
the claim for relief was filed until 60 days after the waiver
is filed with the Secretary.
(3) Limitation on Tax Court jurisdiction
If a suit for refund is begun by either individual filing the
joint return pursuant to section 6532 -
(A) the Tax Court shall lose jurisdiction of the individual's
action under this section to whatever extent jurisdiction is
acquired by the district court or the United States Court of
Federal Claims over the taxable years that are the subject of
the suit for refund, and
(B) the court acquiring jurisdiction shall have jurisdiction
over the petition filed under this subsection.
(4) Notice to other spouse
The Tax Court shall establish rules which provide the
individual filing a joint return but not making the election
under subsection (b) or (c) or the request for equitable relief
under subsection (f) with adequate notice and an opportunity to
become a party to a proceeding under either such subsection.
(5) Waiver
An individual who elects the application of subsection (b) or
(c) or who requests equitable relief under subsection (f) (and
who agrees with the Secretary's determination of relief)
may waive in writing at any time the restrictions in paragraph
(1)(B) with respect to collection of the outstanding assessment
(whether or not a notice of the Secretary's final determination
of relief has been mailed).
(f) Equitable relief
Under procedures prescribed by the Secretary, if -
(1) taking into account all the facts and circumstances, it is
inequitable to hold the individual liable for any unpaid tax or
any deficiency (or any portion of either); and
(2) relief is not available to such individual under subsection
(b) or (c),
the Secretary may relieve such individual of such liability.
(g) Credits and refunds
(1) In general
Except as provided in paragraphs (2) and (3), notwithstanding
any other law or rule of law (other than section 6511, 6512(b),
7121, or 7122), credit or refund shall be allowed or made to the
extent attributable to the application of this section.
(2) Res judicata
In the case of any election under subsection (b) or (c) or of
any request for equitable relief under subsection (f), if a
decision of a court in any prior proceeding for the same taxable
year has become final, such decision shall be conclusive except
with respect to the qualification of the individual for relief
which was not an issue in such proceeding. The exception
contained in the preceding sentence shall not apply if the court
determines that the individual participated meaningfully in such
prior proceeding.
(3) Credit and refund not allowed under subsection (c)
No credit or refund shall be allowed as a result of an election
under subsection (c).
(h) Regulations
The Secretary shall prescribe such regulations as are necessary
to carry out the provisions of this section, including -
(1) regulations providing methods for allocation of items other
than the methods under subsection (d)(3); and
(2) regulations providing the opportunity for an individual to
have notice of, and an opportunity to participate in, any
administrative proceeding with respect to an election made under
subsection (b) or (c) or a request for equitable relief made under
subsection (f) by the other individual filing the joint return.
Sources
(Added Pub. L. 105-206, title III, Sec. 3201(a), July 22, 1998, 112
Stat. 734; amended Pub. L. 105-277, div. J, title IV, Sec.
4002(c)(2), Oct. 21, 1998, 112 Stat. 2681-906; Pub. L. 106-554,
Sec. 1(a)(7) (title III, Sec. 313(a)), Dec. 21, 2000, 114 Stat.
2763, 2763A-640.)
Miscellaneous
PRIOR PROVISIONS
A prior section 6015, acts Aug. 16, 1954, ch. 736, 68A Stat. 737;
Sept. 2, 1958, Pub. L. 85-866, title I, Sec. 74, 72 Stat. 1660;
Sept. 14, 1960, Pub. L. 86-779, Sec. 5(a), 74 Stat. 1000; Sept. 25,
1962, Pub. L. 87-682, Sec. 1(a)(1), 76 Stat. 575; Mar. 15, 1966,
Pub. L. 89-368, title I, Sec. 102(a), 80 Stat. 62; Nov. 13, 1966,
Pub. L. 89-809, title I, Sec. 103(j), 80 Stat. 1554; Dec. 30, 1969,
Pub. L. 91-172, title III, Sec. 301(b)(12), title VIII, Sec.
803(d)(7), title IX, Sec. 944(a), 83 Stat. 586, 684, 729; Dec. 10,
1971, Pub. L. 92-178, title II, Sec. 209(a), 85 Stat. 517; Oct. 4,
1976, Pub. L. 94-455, title XIX, Sec. 1906(a)(2), (b)(13)(A), 90
Stat. 1824, 1834; Nov. 6, 1978, Pub. L. 95-600, title IV, Sec.
421(e)(7), 92 Stat. 2876; Aug. 13, 1981, Pub. L. 97-34, title VII,
Sec. 725(a), (c)(2), 95 Stat. 345, 346; Sept. 3, 1982, Pub. L.
97-248, title II, Sec. 201(d)(7), formerly Sec. 201(c)(7), title
III, Sec. 307(a)(6), 308(a), 328(b)(1), 96 Stat. 420, 589, 591,
618, redesignated and amended Jan. 12, 1983, Pub. L. 97-448, title
I, Sec. 107(c)(2), title II, Sec. 201(j)(1), title III, Sec.
306(a)(1)(A)(i), 96 Stat. 2391, 2395, 2400; Aug. 5, 1983, Pub. L.
98-67, title I, Sec. 102(a), 97 Stat. 369, related to declaration
of estimated income tax by individuals, prior to repeal by Pub. L.
98-369, div. A, title IV, Sec. 412(a)(1), 414(a)(1), July 18,
1984, 98 Stat. 792, 793, applicable with respect to taxable years
beginning after Dec. 31, 1984.
AMENDMENTS
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 408. TAX COURT REVIEW OF REQUESTS FOR EQUITABLE RELIEF FROM JOINT
AND SEVERAL LIABILITY.
(a) In General.--Paragraph (1) of section 6015(e) of the Internal
Revenue Code of 1986 <<NOTE: 26 USC 6015.>> (relating to petition for
tax court review) is amended by inserting ``, or in the case of an
individual who requests equitable relief under subsection (f)'' after ``who elects
to have subsection (b) or (c) apply''.
(b) Conforming Amendments.--
(1) Section 6015(e)(1)(A)(i)(II) of such Code is amended by
inserting ``or request is made'' after ``election is filed''.
(2) Section 6015(e)(1)(B)(i) of such Code is amended--
(A) by inserting ``or requesting equitable relief
under subsection (f)'' after ``making an election under
subsection (b) or (c)'', and
(B) by inserting ``or request'' after ``to which
such election''.
(3) Section 6015(e)(1)(B)(ii) of such Code is amended by
inserting ``or to which the request under subsection (f)
relates'' after ``to which the election under subsection (b) or
(c) relates''.
(4) Section 6015(e)(4) of such Code is amended by inserting
``or the request for equitable relief under subsection (f)''
after ``the election under subsection (b) or (c)''.
(5) Section 6015(e)(5) of such Code is amended by inserting
``or who requests equitable relief under subsection (f)'' after
``who elects the application of subsection (b) or (c)''.
(6) Section 6015(g)(2) of such Code is amended by inserting
``or of any request for equitable relief under subsection (f)''
after ``any election under subsection (b) or (c)''.
(7) Section 6015(h)(2) of such Code is amended by inserting
``or a request for equitable relief made under subsection (f)''
after ``with respect to an election made under subsection (b) or
(c)''.
2000 - Subsec. (c)(3)(B). Pub. L. 106-554, Sec. 1(a)(7) (title
III, Sec. 313(a)(1)), substituted ''may be made at any time after a
deficiency for such year is asserted but'' for ''shall be made''.
Subsec. (e)(1). Pub. L. 106-554, Sec. 1(a)(7) (title III, Sec.
313(a)(3)(A)), inserted ''against whom a deficiency has been
asserted and'' after ''individual'' in introductory provisions.
Subsec. (e)(1)(A). Pub. L. 106-554, Sec. 1(a)(7) (title III, Sec.
313(a)(3)(B)), amended heading and text of subpar. (A) generally.
Prior to amendment, text read as follows: ''The individual may
petition the Tax Court (and the Tax Court shall have jurisdiction)
to determine the appropriate relief available to the individual
under this section if such petition is filed during the 90-day
period beginning on the date on which the Secretary mails by
certified or registered mail a notice to such individual of the
Secretary's determination of relief available to the individual.
Notwithstanding the preceding sentence, an individual may file such
petition at any time after the date which is 6 months after the
date such election is filed with the Secretary and before the close
of such 90-day period.''
Subsec. (e)(1)(B)(i). Pub. L. 106-554, Sec. 1(a)(7) (title III,
Sec. 313(a)(3)(C)), substituted ''until the close of the 90th day
referred to in subparagraph (A)(ii)'' for ''until the expiration of
the 90-day period described in subparagraph (A)'' and inserted
''under subparagraph (A)'' after ''filed with the Tax Court''.
Subsec. (e)(2). Pub. L. 106-554, Sec. 1(a)(7) (title III, Sec.
313(a)(3)(D)(ii)), amended heading and text of par. (2) generally.
Prior to amendment, text read as follows: ''The running of the
period of limitations in section 6502 on the collection of the
assessment to which the petition under paragraph (1)(A) relates
shall be suspended for the period during which the Secretary is
prohibited by paragraph (1)(B) from collecting by levy or a
proceeding in court and for 60 days thereafter.''
Subsec. (e)(3). Pub. L. 106-554, Sec. 1(a)(7) (title III, Sec.
313(a)(2)(B)), amended par. (3) generally, substituting
''Limitation on Tax Court jurisdiction'' for ''Applicable rules''
in heading and restating provisions relating to limitations on the
Tax Court's jurisdiction and eliminating provisions relating to res
judicata and allowance of credits or refunds in text.
Subsec. (e)(5). Pub. L. 106-554, Sec. 1(a)(7) (title III, Sec.
313(a)(3)(D)(i)), added par. (5).
Subsecs. (g), (h). Pub. L. 106-554, Sec. 1(a)(7) (title III, Sec.
313(a)(2)(A)), added subsec. (g) and redesignated former subsec.
(g) as (h).
1998 - Subsec. (e)(3)(A). Pub. L. 105-277 substituted ''of
subsection (b) or (f)'' for ''of this section''.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 408(c) <<NOTE: 26 USC 6015 note.>> Effective Date.--The amendments made
by this section shall apply with respect to liability for taxes arising
or remaining unpaid on or after the date of the enactment of this Act.
EFFECTIVE DATE OF 2000 AMENDMENT
Pub. L. 106-554, Sec. 1(a)(7) (title III, Sec. 313(f)), Dec. 21,
2000, 114 Stat. 2763, 2763A-643, provided that: ''The amendments
made by subsections (a) and (b) (amending this section and sections
6330, 6331, 7421, and 7463 of this title) shall take effect on the
date of the enactment of this Act (Dec. 21, 2000). The amendments
made by subsections (c), (d), and (e) (amending sections 6103,
6110, and 6330 of this title) shall take effect as if included in
the provisions of the Internal Revenue Service Restructuring and
Reform Act of 1998 (Pub. L. 105-206) to which they relate.''
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-277 effective as if included in the
provision of the Internal Revenue Service Restructuring and Reform
Act of 1998, Pub. L. 105-206, to which such amendment relates, see
section 4002(k) of Pub. L. 105-277, set out as a note under section
1 of this title.
EFFECTIVE DATE
Pub. L. 105-206, title III, Sec. 3201(g), July 22, 1998, 112
Stat. 740, provided that:
''(1) In general. - Except as provided in paragraph (2), the
amendments made by this section (enacting this section, amending
sections 66, 6013, 6230, and 7421 of this title, and enacting
provisions set out as notes under this section and section 6013 of
this title) shall apply to any liability for tax arising after the
date of the enactment of this Act (July 22, 1998) and any liability
for tax arising on or before such date but remaining unpaid as of
such date.
''(2) 2-year period. - The 2-year period under subsection
(b)(1)(E) or (c)(3)(B) of section 6015 of the Internal Revenue Code
of 1986 shall not expire before the date which is 2 years after the
date of the first collection activity after the date of the
enactment of this Act (July 22, 1998).''
SEPARATE FORM FOR APPLYING FOR SPOUSAL RELIEF
Pub. L. 105-206, title III, Sec. 3201(c), July 22, 1998, 112
Stat. 740, provided that: ''Not later than 180 days after the date
of the enactment of this Act (July 22, 1998), the Secretary of the
Treasury shall develop a separate form with instructions for use by
taxpayers in applying for relief under section 6015(a) of the
Internal Revenue Code of 1986, as added by this section.''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6230, 7421, 7463 of this
title.
