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(1) In general.--Under regulations prescribed
by the Secretary, if--
(A) a joint return has been made under
this section for a taxable year,
(B) on such return there is a
substantial understatement of tax
attributable to grossly erroneous items of
one spouse,
(C) the other spouse establishes that in
signing the return he or she did not know,
and had no reason to know, that there was
such substantial understatement, and
(D) taking into account all the facts
and circumstances, it is inequitable to hold
the other spouse liable for the deficiency in
tax for such taxable year attributable to
such substantial understatement,
then the other spouse shall be relieved of
liability for tax (including interest, penalties,
and other amounts) for such taxable year to the
extent such liability is attributable to such
substantial understatement.
In addition, the understatement must exceed a specified
percentage of Mrs. Barnhill’s adjusted gross income for the
preadjustment year. Sec. 6013(e)(4). She bears the burden of
establishing that each of the requirements of section 6013(e) has
been satisfied. Rule 142(a); Bokum v. Commissioner, 992 F.2d
1132 (11th Cir. 1993), affg. 94 T.C. 126 (1990); Sonnenborn v.
Commissioner, 57 T.C. 373, 381-383 (1971).
The parties agree that joint returns were filed by
petitioners for each of the years in issue and that the returns
contained a substantial understatement of tax attributable to
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Last modified: May 25, 2011