Figure C. Do You Qualify for Equitable Relief? Summary: This flowchart is used to determine if a taxpayer qualifies for equitable relief of the understatement or underpayment
of
tax.Start. This is the beginning of the flowchart.Decision (1). Are you eligible for innocent spouse relief, relief by separation of liability, or relief from liability arising from community
property
law?
| IF Yes Continue To Process (a)
|
| IF No Continue To Decision (2)
|
Process (a). You do not qualify for equitable relief.
Decision (2). Did you file your return with the intent to commit fraud?
| IF Yes Continue To Process (a)
|
| IF No Continue To Decision (3)
|
Decision (3). Did you pay the tax?Footnote: If Yes, you may qualify for equitable relief and receive a refund of certain installment payments
made after you file Form
8857.
| IF Yes Continue To Process (a)
|
| IF No Continue To Decision (4)
|
Decision (4). Did your spouse transfer property to you for the main purpose of avoiding tax or the payment of tax?
| IF Yes Continue To Process (a)
|
| IF No Continue To Decision (5)
|
Decision (5). Did you and your spouse transfer property to one another as part of a fraudulent scheme?
| IF Yes Continue To Process (a)
|
| IF No Continue To Decision (6)
|
Decision (6). Are you able to show it would be unfair to hold you liable for the understatement or underpayment of tax?
| IF Yes Continue To Process (b)
|
| IF No Continue To Process (a)
|
Process (b). You may qualify for equitable relief.
End. This is the end of the flowchart.
