Estate of Mark R. Woodward, Deceased, Lillian H. Woodward, Executrix, and Lillian H. Woodward - Page 9

          who file joint income tax returns are jointly and severally                 
          liable for the full amount of tax due on the combined incomes.              
          Sec. 6013(d)(3).                                                            
               Joint and several liability applies even under circumstances           
          where "one spouse may be far less informed about the contents of            
          the return than the other".  Sonnenborn v. Commissioner, 57 T.C.            
          373, 381 (1971).  However, the general rule is somewhat mitigated           
          by the innocent spouse provisions of section 6013(e).                       
               Section 6013(e) relieves a spouse of liability, to the                 
          extent provided by the statute, for tax (including interest,                
          penalties, and other amounts) if each of the following four                 
          requirements is satisfied: (1) A joint Federal income tax return            
          was filed by the spouses; (2) there is a substantial                        
          understatement of tax attributable to grossly erroneous items of            
          the other spouse; (3) in signing the return, the putative                   
          innocent spouse neither knew, nor had reason to know, of such               
          substantial understatement; and (4) taking into account all the             
          facts and circumstances, it would be inequitable to hold the                
          putative innocent spouse liable for the deficiency attributable             
          to the understatement.  Sec. 6013(e)(1).  If the substantial                
          understatement is attributable to any claim of a deduction,                 
          credit, or basis by the other spouse in an amount for which there           
          is no basis in fact or law, then an additional requirement must             
          be satisfied; namely, the substantial understatement must exceed            
          a specified percentage of the putative innocent spouse's adjusted           
          gross income for the "preadjustment year".  Sec. 6013(e)(4).                




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