Carl Dimichele and Eileen Dimichele - Page 16

                  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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