A bill to amend the Internal Revenue Code of 1954 to expand the circumstances where relief from liability for income tax (and penalties and interest with respect thereto) is provided to a spouse for a deficiency with respect to a joint return, and to provide similar relief with respect to certain separate returns of married individuals.

Amends the Internal Revenue Code to revise rules relating to an innocent spouse who files a joint return in which there is a substantial understatement of tax attributable to grossly erroneous items of the other spouse.

Relieves from tax liability for items of community income a taxpayer who is living apart from a spouse and who files a seperate return which does not include an item of community income attributable to the taxpayer's spouse.