- 8 -
1. Section 6015(b)
To qualify for relief under section 6015(b)(1), the electing
spouse must establish, inter alia, that: (A) A joint return has
been made for a taxable year; (B) there is an understatement of
tax on the return which is attributable to the erroneous items of
the nonelecting spouse; (C) in signing the return, the electing
spouse did not know, and had no reason to know, that there was
such an understatement; and (D) taking into account all the facts
and circumstances, it is inequitable to hold the electing spouse
liable for the deficiency in tax for the taxable year
attributable to the understatement. See Alt v. Commissioner, 119
T.C. 306, 313 (2002).
Petitioner is not entitled to relief under section 6015(b)
with respect to the understatements attributable to the
disallowed NOL carryforward deductions. Those items are
attributable to the residence at 111 Diablo Drive, which she
owned. Petitioner agrees that the casualty loss and the NOL
carryforward deductions are her tax items for purposes of section
6015(b). Petitioner cannot be granted relief under section
6015(b) for understatements that are attributable to her own
erroneous items. See sec. 6015(b)(1).
The Far West Drilling partnership deductions are Mr.
Hopkins’s tax items. With respect to those deductions,
petitioner bears the burden of proving that in signing the joint
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011