a joint return, it will often not even address the element
of knowledge under section 6013(e)(1)(C). See Purificato
v. Commissioner, supra at 292; Estate of Krock v.
Commissioner, supra at 677; Stiteler v. Commissioner, T.C.
Memo. 1995-279. Under this analysis, since petitioner must
prove all of the elements under section 6013(e)(1) to
prevail, the failure to prove any one of these elements
will preclude innocent spouse relief. It is reasoned that
if the taxpayer cannot meet the burden of proving that it
would be inequitable to hold her liable, then no other
element of the test need be addressed.
We adopt this mode of analysis. Petitioner has failed
to meet her burden of showing that, under all of the facts
and circumstances, it would be inequitable to hold her
liable for the tax owing on the joint income tax returns
filed together with her husband. We therefore express no
opinion with respect to petitioner's knowledge of the
circumstances surrounding the subject deficiencies. We
find that petitioner may not be relieved of liability for
the subject deficiencies under the innocent spouse
provision of the Internal Revenue Code.
[Although respondent does not allege fraud, I have
included an exploration of the issue as follows:]
In addition to determining petitioner's liability for
the assessed deficiencies, we must determine whether
petitioner is also liable for the asserted additions to tax
for fraud. Under section 6653(b)(4), a spouse is liable
for the fraud addition on the couple's joint return if that
spouse also committed fraud. On this issue, respondent
bears the burden of proof. Stone v. Commissioner, 56 T.C.
213, 227 (1971). Fraud is not imputed from one spouse to
another, and in the case of a joint return, as here,
respondent must prove fraud on the part of each spouse.
Sec. 6653(b). (Now section 6663(c); Hicks Co. v.
Commissioner, 56 T.C. 982, 1030 (1971), affd. 470 F.2d 87
(1st Cir. 1972); Stone v. Commissioner, supra at 227-228.
For purposes of section 6653(b), fraud means the
intentional commission of an act or acts for the specific
Page: Previous 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 NextLast modified: May 25, 2011