PUBLIC LAW 105-206-^JULY 22, 1998 112 STAT. 739 collecting by levy or a proceeding in court and for 60 days thereafter. " (3) APPLICABLE RULES.— " (A) ALLOWANCE OF CREDIT OR REFUND.— Except as provided in subparagraph (B), notwithstanding any other law or rule of law (other than section 6512(b), 7121, or 7122), credit or refund shall be allowed or made to the extent attributable to the application of this section. "(B) RES JUDICATA.—In the case of any election under subsection (b) or (c), if a decision of the Tax Court in any prior proceeding for the same taxable year has become final, such decision shall be conclusive except with respect to the qualification of the individual for relief which was not an issue in such proceeding. The exception contained in the preceding sentence shall not apply if the Tax Court determines that the individual participated meaningfully in such prior proceeding. "(C) LIMITATION ON TAX COURT JURISDICTION.— If a suit for refund is begun by either individual filing the joint return pursuant to section 6532— "(i) the Tax Court shall lose jurisdiction of the individual's action under this section to whatever extent jurisdiction is acquired by the district court or the United States Court of Federal Claims over the taxable years that are the subject of the suit for refund; and "(ii) the court acquiring jurisdiction shall have jurisdiction over the petition filed under this subsection. "(4) NOTICE TO OTHER SPOUSE. —The Tax Court shall estab- Regulations, lish rules which provide the individual filing a joint return but not making the election under subsection (b) or (c) with adequate notice and an opportunity to become a party to a proceeding under either such subsection. "(f) EQUITABLE RELIEF.— Under procedures prescribed by the Secretary, if— "(1) taking into account all the facts and circumstances, it is inequitable to hold the individual liable for any unpaid tax or any deficiency (or any portion of either); and "(2) relief is not available to such individual under subsection (b) or (c), the Secretary may relieve such individual of such liability. "(g) REGULATIONS. — The Secretary shall prescribe such regulations as are necessary to carry out the provisions of this section, including— "(1) regulations providing methods for allocation of items other than the methods under subsection (d)(3); and "(2) regulations providing the opportunity for an individual to have notice of, and an opportunity to participate in, any administrative proceeding with respect to an election made under subsection (b) or (c) by the other individual filing the joint return.". (b) EQUITABLE RELIEF FOR INDIVIDUALS NOT FILING JOINT RETURN. —Section 66(c) (relating to spouse relieved of liability in certain other cases) is amended by adding at the end the following new sentence: "Under procedures prescribed by the Secretary, if. Procedures, taking into account all the facts and circumstances, it is inequitable
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