- 34 -
then a single parent, in paying her bills, including her
mortgage. On December 4, 1989, Mrs. Quinn paid $1,150 for
plastic surgery to remove a scar from Linda's lip. Mrs. Quinn
gave Linda a $500 check for Christmas in 1990. In August of
1991, Mrs. Quinn paid $700 for one of Linda's graduate school
courses. In June of 1993, Mrs. Quinn gave Linda $2,000 to
purchase a different house; the mortgage was issued in both of
their names. Mrs. Quinn also paid $1,200 of the 1993 closing
costs on the new house.
OPINION
The issues for decision in these consolidated cases are:
(1) Whether Mrs. Gaskins is entitled to relief as an innocent
spouse under section 6013(e), and (2) whether Mrs. Quinn is
entitled to relief as an innocent spouse under section 6013(e).
Normally, spouses who have filed a joint return are
jointly and severally liable for the tax due. Sec. 6013(d)(3).
However, section 6013(e)(1) relieves a spouse of liability for
the tax, including interest, penalties, and other amounts,
attributable to the substantial understatement of tax of the
other spouse, if that spouse meets the following requirements:
(1) A joint, Federal income tax return was filed; (2) there is a
substantial understatement of tax attributable to grossly
erroneous items of the other spouse;-(3) in signing the return,
the alleged innocent spouse did not know, and had no reason to
know, of the substantial understatement; and (4) taking into
account all the facts and circumstances, it would be inequitable
Page: Previous 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 NextLast modified: May 25, 2011