- 49 -
their two daughters. Remaining in the marriage, however, does
not preclude Mrs. Quinn from relief.
Should liability be imposed on Mrs. Quinn, the debt would
be paid from her assets, primarily her retirement funds and the
house given to her by her parents. This would be inequitable
since she did not benefit from Mr. Quinn's omitted income. Given
all the facts and circumstances, we conclude that it would be
inequitable to hold Mrs. Quinn liable for the deficiencies in
tax arising from Mr. Quinn's understated income for the taxable
years 1979, 1980, and 1981.
We hold that both Mrs. Gaskins and Mrs. Quinn are entitled
to innocent spouse relief under section 6013(e).
Based on the concessions and the above holdings,
Decisions will be entered
for petitioners Elaine Gaskins
and Sabina A. Ouinn on the
innocent spouse issue for 1979,
1980, and 1981.
Decisions will be entered
for respondent on the
deficiencies in tax for 1979,
1980, and 1981, and the addition
to tax for fraud for 1979 and
1980 as to petitioners William C.
Gaskins and Pasquale T. Quinn.
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