- 25 - Buchine v. Commissioner, 20 F.3d 173, 181 (5th Cir. 1994), affg. T.C. Memo. 1992-36; sec. 1.6013-5(b), Income Tax Regs. Normal support, which is to be measured by a couple’s circumstances, is not considered a significant benefit. Sanders v. United States, supra at 168; Terzian v. Commissioner, 72 T.C. at 1172; Mysse v. Commissioner, 57 T.C. at 699. A significant benefit exists if expenditures have been made which are unusual for the taxpayer’s accustomed lifestyle. Terzian v. Commissioner, supra. Other factors include: (1) Whether the spouse seeking relief has been deserted by the other spouse or is divorced or separated from that spouse, sec. 1.6013-5(b), Income Tax Regs.; and (2) probable future hardships that would be visited upon the purportedly innocent spouse were he or she not relieved from liability, Sanders v. United States, supra at 171 n.16. We conclude, based on the record in the instant case, that petitioner received a significant benefit from the funds that Ms. Dawson embezzled in 1988. The embezzled funds allowed more funds to be available for petitioner’s household than were provided by the wage income that was earned by petitioner and Ms. Dawson and 9(...continued) longer expressly requires that a taxpayer seeking relief as an innocent spouse show that he or she did not significantly benefit from items of income omitted from a joint return, the question of significant benefit is nonetheless a factor properly to be considered in deciding whether it is inequitable to hold a spouse liable for the understatement attributable to the omission. Estate of Krock v. Commissioner, 93 T.C. 672, 678 (1989); Purcell v. Commissioner, 86 T.C. 228, 241 (1986), affd. 826 F.2d 470 (6th Cir. 1987).Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
Last modified: May 25, 2011