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During the years in issue, petitioners maintained joint
accounts at Valley National Bank, United California Bank, and
Wells Fargo Bank. In about 1967, petitioners purchased a
residence in Burbank, California. Between 1975 and 1985,
petitioners improved their residence with a 450-square-foot
addition, a swimming pool and a spa, at a cost of approximately
$100,000.
On April 1, 1994, Mr. Barnhill executed a Grant Deed in
which petitioners’ residence was transferred to Mrs. Barnhill.
Also, on April 1, 1994, Mrs. Barnhill executed an Acknowledgment
of Sole and Separate Property, in which she agreed that she had
no claim to a computer business operated by Mr. Barnhill, and she
waived any right of spousal support from Mr. Barnhill.
From 1986 through the time of trial, Mrs. Barnhill was
employed for wages. She seeks innocent spouse treatment “in
order to avoid garnishments.”
OPINION
Spouses filing a joint tax return are jointly and severally
liable for the tax arising therefrom. Sec. 6013(d). If,
however, a taxpayer spouse satisfies the requirements of section
6013(e), he or she is relieved from such joint and several
liability.
Section 6013(e) provides:
(e) Spouse Relieved of Liability in Certain
Cases.--
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