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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 367
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