John P. Crowley and Elizabeth R. Cockrell - Page 11

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          that petitioner has failed to satisfy all of the requirements for           
          relief as an innocent spouse provided by section 6013(e) and has            
          failed to satisfy all of the transitional rule requirements as              
          well.  Accordingly, we need not reconsider the holding of our               
          prior Opinion that the deductions claimed on the returns for the            
          taxable years in issue are "grossly erroneous items" within the             
          meaning of section 6013(e)(2)(B).9                                          
               Our first consideration is whether, for taxable years 1980             
          and 1981, petitioner has established the requirements of section            
          6013(e)(1)(C) that, in signing each of the returns for those                
          years, "she did not know, and had no reason to know," that a                
          substantial understatement of tax exists as to each such return.            
          Respondent contends that petitioner has failed to establish,                
          inter alia, that she did not know and had no reason to know of              
          the substantial understatements in issue when she signed the                
          returns for the taxable years in issue, and that petitioner                 


          8(...continued)                                                             
          substantial understatements in issue.  We accordingly will not              
          reopen the record to admit additional evidence with respect to              
          the requirements of sec. 6013(e)(1)(C).                                     
          9                                                                           
               As to petitioner's allegation that respondent's counsel                
          violated Rule 201 and rule 3.3(a)(3) of the Model Rules, the                
          misconduct asserted by petitioner relates only to evidence                  
          potentially pertinent to the "grossly erroneous items" issue.               
          Because we hold that petitioner is otherwise not entitled to                
          relief under sec. 6013(e), and, because of such holding, do not             
          reconsider our prior holding with respect to the "grossly                   
          erroneous items" issue, we need not, and we do not, address that            
          allegation in disposing of the instant motion.                              




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