Joseph L. Barnhill, Jr. and Cynthia A. Barnhill - Page 5

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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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