15-30-2646. Relief from joint and several liability on joint return -- limitations -- rules. (1) A taxpayer who has obtained relief from joint and several liability under section 6015 of the Internal Revenue Code, 26 U.S.C. 6015, may apply to the department for relief from joint and several liability of the tax imposed by this chapter. The taxpayer must have filed a Montana joint return for each of the tax years for which relief is sought under this section.

(2) In applying for relief under this section, the taxpayer shall provide the department with the following:

(a) the tax years for which relief is sought;

(b) complete copies of all correspondence sent to and received from the internal revenue service;

(c) any court order stating that the taxpayer's spouse or former spouse is responsible for paying the Montana individual income tax liability; and

(d) other information demonstrating that it would be unfair to hold the taxpayer responsible for the tax, penalty, and interest.

(3) If the department determines, after consideration of the facts and circumstances presented by the taxpayer, that it would be unfair to hold the taxpayer responsible for some or all of the tax, penalty, and interest, the department shall grant the taxpayer relief from joint and several liability. The relief from joint and several liability granted by the department:

(a) must be based on the same circumstances for which relief was granted the taxpayer by the internal revenue service; and

(b) may not exceed the relief granted by the internal revenue service.

(4) The department shall adopt rules to implement and administer this section, including but not limited to establishing procedures for applying for relief allowed under this section.

History: En. Sec. 1, Ch. 470, L. 2009.