Just as the title says, Section 6015(f) is commonly referred to as “equitable relief”. This is the only section where relief is available for underpayment cases. This section also applies to understatement cases that do not qualify for relief under Section 6015(b) or Section 6015(c). This is the most complex of the three types of relief. The tests for relief under this section are:
- A joint return was filed.
- Relief is not available under section 6015(b) or section 6015(c).
- The claim must be filed within two years of the first collection activity.
- The liability remains unpaid.
- There are no fraudulent transfers of assets.
- There are no disqualified transfers of assets.
- The return was not filed with fraudulent intent.