4
arrests all involved alcohol and not narcotics. Petitioner had
never seen any narcotics in their home.
Mr. Vriner subsequently was arrested, but he did not discuss
his arrest with petitioner. After reading the newspaper and
attending her husband's court appearances, petitioner learned
that Mr. Vriner and his brother had been trafficking in
narcotics, and they stored the narcotics in a warehouse located
in Urbana, Illinois. The deficiency in this case stems from the
proceeds of the Vriner brothers' drug activities.
OPINION
Spouses filing a joint return are jointly and severally
liable for the tax arising therefrom. Sec. 6013(d)(3). The
innocent spouse rule permits a spouse to avoid joint and several
liability in certain cases. Sec. 6013(e). For petitioner to
qualify as an innocent spouse, it must be established: (1) That
a joint return was filed for the year in issue; (2) that there
was a substantial understatement of tax attributable to grossly
erroneous items of Mr. Vriner; (3) that, in signing the return,
she did not know or have reason to know of the substantial
understatement; and (4) that taking into account all the facts
and circumstances, it would be inequitable to hold her liable for
the deficiency. Sec. 6013(e)(1)(A)-(D). Petitioner has the
burden of proving each requirement of section 6013(e). Rule
142(a); Russo v. Commissioner, 98 T.C. 28, 31-32 (1992). A
failure to meet any one of the requirements will preclude the
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