Estate of Mark R. Woodward, Deceased, Lillian H. Woodward, Executrix, and Lillian H. Woodward - Page 10

               The putative innocent spouse has the burden of proving that            
          each of the foregoing requirements is satisfied.  Rule 142(a);              
          Bokum v. Commissioner, 94 T.C. 126, 138 (1990), affd. 992 F.2d              
          1132 (11th Cir. 1993).  Failure to satisfy any of the                       
          requirements will preclude a holding that the putative innocent             
          spouse is entitled to relief under section 6013(e).  Stevens v.             
          Commissioner, 872 F.2d 1499, 1504 (11th Cir. 1989), affg. T.C.              
          Memo. 1988-63.                                                              
               The parties agree that petitioner and Mr. Woodward filed               
          joint income tax returns for the taxable years 1980 through 1983.           
          The parties also agree that the credits claimed by petitioner and           
          Mr. Woodward for the taxable years 1980 and 1981 are grossly                
          erroneous items giving rise to understatements of tax for those             
          years.  Although it is far from apparent, we shall proceed on the           
          basis that the grossly erroneous items were items of Mr.                    
          Woodward.  Further, the parties agree that the substantial                  
          understatements of tax exceeded the requisite percentage of                 
          income in 1987, the preadjustment year.  Therefore, in order to             
          be relieved of liability as an innocent spouse, petitioner must             
          prove: (1) In signing the income tax return for 1983 and the                
          application for refund, she neither knew, nor had reason to know,           
          of the substantial understatements of tax on her refund claims              
          for 1980 and 1981; and (2) it would be inequitable to hold her              
          liable for the deficiencies attributable to such understatements.           
          Sec. 6013(e)(1)(C) and (D).                                                 






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