-3- Edmondson bears the burden of proof are sustained. Thus, the principal issue to be resolved is whether Diane L. Edmondson qualifies for tax relief as an innocent spouse. We also must consider an issue raised by respondent's amended answer, even though the matter was covered by the settlement stipulation. The issue so presented is whether gain from the sale of a house in Seattle, Washington, which was owned by Mr. Edmondson and his first wife, qualifies for deferred recognition pursuant to section 1034. All section references are to the Internal Revenue Code for the year in issue; all Rule references are to the Tax Court Rules of Practice and Procedure. FINDINGS OF FACT Background At the time they filed their petition, Sherburne M. Edmondson, Jr., and Diane L. Edmondson (hereinafter sometimes referred to as the Edmondsons) resided in Sunnyvale, California. Ms. Edmondson (hereinafter referred to as petitioner) filed an amendment to petition on April 12, 1995, asserting that she is an innocent spouse. Petitioner and Mr. Edmondson untimely filed their 1988 joint Federal income tax return on February 11, 1991. The Edmondsons' Marriage Petitioner and Mr. Edmondson met in Seattle in 1981. The next year they married. At that time, petitioner was 21 years old, and Mr. Edmondson was approximately 10 years older. Mr. EdmondsonPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
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