William C. and Elaine Gaskins - Page 35

                                                 - 35 -                                                    
            to hold the alleged innocent spouse liable for the deficiency                                  
            attributable to such substantial understatement. Sec.                                          
            6013(e)(1).                                                                                    
                  Mrs. Gaskins and Mrs. Quinn each have the burden of                                      
            proving that she meets these requirements. Rule 142(a). A                                      
            petitioner who fails to meet all of the requirements of section                                
            6013(e)(1) will not qualify for innocent spouse relief.                                        
            Purificato v. Commissioner, 9 F.3d 290, 293 (3d Cir. 1993),                                    
            affg. T.C. Memo. 1992-580; Purcell v. Commissioner, 826 F.2d                                   
            470, 473 (6th Cir. 1987), affg. 86 T.C. 228 (1986); Bokum v.                                   
            Commissioner, 94 T.C. 126, 138 (1990), affd. 992 F.2d 1132 (11th                               
            Cir. 1993). Respondent has conceded that both Mrs. Gaskins and                                 
            Mrs. Quinn meet the first two requirements of section                                          
            6013(e)(1). We shall consider each petitioner in turn with                                     
            respect to the remaining two requirements.                                                     
                    Mrs. Gaskins                                                                           
                  Knowledge of the Understatement                                                          
                  Mrs. Gaskins argues that she had no actual knowledge, nor                                
            did she have reason to know, of any diverted receipts from West                                
            Pine or substantial understatements of tax, and therefore, she                                 
            should be afforded relief as an innocent spouse. Respondent                                    
            contends that Mrs. Gaskins has not established her lack of                                     
            knowledge or that she had no reason to know.                                                   
                  A taxpayer seeking innocent spouse relief must establish                                 
            that he or she in signing the return did not know, and had no                                  
            reason to know, that there was a substantial understatement of                                 



Page:  Previous  25  26  27  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  43  44  Next

Last modified: May 25, 2011