Mrs. DiMichele. Of the bank accounts owned jointly by
petitioners, the Delaware Cash Reserve Account #8-943701-2
was ordered to be forfeited. The property at 1433 W.
Passyunk Avenue was ordered forfeited as well as the
DiMicheles' interest in the 1441 Shunk Street property.
The remaining joint and individually held accounts of
petitioner were retained by petitioner. All cash found at
petitioners' residence and in the safe deposit boxes was
forfeited. The Cadillac apparently remained in
petitioner's possession. [Ex.20] All other jointly and
individually held property not ordered forfeited remained
in petitioner's possession.
Under section 6013(e)(1)(D), petitioner must prove
that, taking into account all of the facts and
circumstances of the case, it would be inequitable to hold
her liable for the tax deficiency attributable to her
spouse. Sec. 16.6013-5(b), Income Tax Regs. Factors to be
considered are: (i) Whether the spouse claiming relief
significantly benefitted from the grossly erroneous items
attributable to the culpable spouse, Estate of Krock v.
Commissioner, 93 T.C. 672, 677 (1989); and (ii) whether the
spouse claiming relief has been deserted by or divorced or
separated from the culpable spouse. Id. at 678; section
1.6013-5(b), Income Tax Regs.
In determining whether a putative innocent spouse
significantly benefitted from the grossly erroneous items
attributable to the culpable spouse, we look to whether the
spouse claiming relief significantly benefitted beyond
normal support, either directly or indirectly, from the
erroneous items. Belk v. Commissioner, 93 T.C. 434, 440
(1989); Parcel v. Commissioner, 86 T.C. 228, 242 (1986),
affd. 826 F.2d 470 (6th Cir. 1987); section 1.6013-5(b),
Income Tax Regs.
The regulations further state that:
Evidence of direct or indirect benefit may
consist of transfers of property, including
transfers which may be received several years
after the year in which the omitted item of
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