Tax Fairness for Abuse Survivors Act

Section 6015 of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:

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 (hereafter referred to as nonrequesting spouse);

(C) the other individual (hereafter referred to as requesting spouse), or a member of the requesting spouse’s family was the victim of domestic violence or domestic abuse by the nonrequesting spouse; and

(D) such requesting spouse establishes that in signing the return, either—

(i) he or she did not know, and had no reason to know, that there was such understatement; or

(ii) he or she did know of such understatement and did not challenge the treatment of items on the return because of fear, pressure, threats of retaliation, or duress by the nonrequesting spouse,

(D) then such requesting spouse 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.

A requesting spouse who elects the application of this subsection shall have the opportunity to provide evidence of domestic violence or abuse against the requesting spouse or a member of the family of the requesting spouse.

If a requesting spouse provides evidence under paragraph (2), for purposes of paragraph (1)(D)(ii), any understatement by the requesting spouse shall be presumed to be due to fear, pressure, threats of retaliation, or duress by the nonrequesting spouse.

If a requesting spouse elects the application of this subsection, any notice to the nonrequesting spouse—

(A) may not include—

(i) information indicating that the requesting spouse is seeking relief under this subsection, or

(ii) any mention of domestic abuse or violence, and

(B) may include general information indicating that the Internal Revenue Service is reviewing the return to which such election relates.

(1) Section 6015(a)(2) of such Code is amended by inserting or subsection (h) after subsection (c) in each place it appears.

(2) Section 6015 of such Code is amended by striking subsection (b) or (c) and inserting subsection (b), (c), or (h) in each place it appears.

(3) Subsection (i) of section 6015 of such Code (as so redesignated by subsection (a)) is amended by striking and at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting; and, and by adding at the end the following new paragraph:

(3) regulations providing that any notice described in paragraph (2) shall conform with the requirements of subsection (h)(4).

The amendments made by this section shall apply to requests for relief after the date of the enactment of this Act.