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* * *. The magnitude of Friedman's gambling losses,
which allegedly exceed the total tax deficiencies owed,
would be a factor weighing heavily in favor of a
finding that taxpayer did not personally benefit from
the tax shelter. See Pietromonaco, 3 F.3d at 1348.
[Friedman v. Commissioner, 53 F.3d at 531.]
The statute requires that petitioner show that "taking into
account all the facts and circumstances, it is inequitable to
hold * * * [her] liable". Sec. 6013(e)(1)(D). Petitioner bears
the burden of proof as to whether it would be inequitable to hold
her liable for the tax shelter portion of the deficiency. Rule
142(a); Russo v. Commissioner, 98 T.C. 28, 31-32 (1992). In
deciding whether it was inequitable to hold a spouse liable,
courts have considered whether the purported innocent spouse
benefited5 beyond normal support, either directly or indirectly,
from the understatement of tax liability. Hayman v.
Commissioner, 992 F.2d 1256, 1262 (2d Cir. 1993), affg. T.C.
Memo. 1992-228; Belk v. Commissioner, 93 T.C. 434, 440 (1989);
Purcell v. Commissioner, 86 T.C. 228, 242 (1986), affd. 826 F.2d
470 (6th Cir. 1987); H. Rept. 98-432 (Part 2), at 1501-1502
(1984); sec. 1.6013-5(b), Income Tax Regs. Deduction items, to
the extent that they reduce taxpayers' tax burden, have the
potential to benefit the purported innocent spouse. Bokum v.
Commissioner, 94 T.C. 126, 157 (1990), affd. 992 F.2d 1132 (11th
Cir. 1993). Normal support is determined in the context of the
5 The statute once required a significant benefit, but the
wording of the statute for the years under consideration does not
specify a significant benefit. See Purificato v. Commissioner, 9
F.3d 290 (3d Cir. 1993), affg. T.C. Memo. 1992-580.
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