- 10 - Husband, and the Wife shall endorse refund checks such [sic] payment. If there is any deficiency or tax liability assessed on any jointly filed tax return, such deficiency or tax liability, with any interest or penalties thereon, shall be paid solely by the Husband, and the said Husband does hereby forever save, hold harmless, indemnify and defend the Wife of, from and against any and all claim or claims that may be made against them or her for the payment, collection or satisfaction of any such tax, interest or penalty due or alleged to be or become due as a result of the filing and/or failure to file any such joint tax return. * * * The cost, if any[,] incurred or to be incurred by either of the parties in connection with the examination and/or audit of any such joint return shall be borne solely and exclusively by the Husband. On April 9, 1992, petitioner, with Philip's consent, filed for a divorce. Petitioner asserts that she and Philip were divorced during 1992. As of the time of trial (April 6, 7, and 8, 1992), the separation agreement was still in effect; however, petitioner and Philip continued to live together at the same location. OPINION The U.S. Court of Appeals for the Second Circuit outlined its mandate to this Court as follows: The resolution of this issue [whether it would be inequitable to hold petitioner jointly liable for the tax deficiencies] depends upon a fact-intensive inquiry into the surrounding facts and circumstances. I.R.C. �6013(e)(1)(D). Relevant factors include significant benefits received as a result of the understatements by the spouse claiming relief, any participation in wrongdoing on the part of the "innocent" spouse, and the effect of a subsequent divorce or separation. See S. Rep. No. 1537, 91st Cong., 2d Sess. (1970) (considering bill to amend the Internal Revenue Code of 1954), reprinted in 1970 U.S.C.C.A.N. 6089, 6092. Normal support, measured by the circumstances of the parties, is not considered a significant benefit for purposes of this determination. Flynn, 93 T.C. at 367Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
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