ISR 104: Equitable Relief

• Instructor: Attorney Bob Schaller
• Lectures: 7
• Quizzes: 1

Equitable Tax Relief.

Congress has authorized “Equitable Relief” for qualifying spouses to relieve them from certain joint and several tax liability related to a tax deficiency and/or underpayment.  26 U.S.C. § 6015(f).  Equitable Relief also applies to penalties and interest when relief is granted for the underlying item.  IRM § 25.15.12.20.3(5) (10-28-2014).  Equitable Relief may be granted from a fraud penalty.  See Aranda v. Comm. of Internal Revenue, 432 F.3d 1140, 1143 (10^th Cir. 2005).  Unlike Innocent Spouse Relief and Separation of Liability Relief, Equitable Relief is the only relief offered by 26 U.S.C. § 6015 that could eliminate both deficiency and underpayment tax liability shown on a taxpayer’s IRS Form 1040.  Innocent Spouse Relief and Separation of Liability Relief are limited to tax deficiency liability.