OPINION
The sole issue for decision is whether petitioner
qualifies as an "innocent spouse" under section 6013(e),
and is thereby relieved of joint and several liability for
the tax and additions to tax determined by respondent with
respect to joint tax returns that petitioner filed with
Mr. DiMichele for 1985 and 1986. Section 6013(e)(1)
relieves a spouse of liability with respect to a joint
Federal income tax return if each of the following four
requirements is met:
(A) a joint return has been made under this
section for a taxable year,
(B) on such return there is a substantial
understatement of tax attributable to grossly
erroneous items of one spouse,
(C) the other spouse establishes that in
signing the return he or she did not know, and
had no reason to know, that there was such
substantial understatement, and
(D) taking into account all the facts and
circumstances, it is inequitable to hold the
other spouse liable for the deficiency in tax
for such taxable year attributable to such
substantial understatement.
Petitioner bears the burden of proving that each
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