Sherburne M. Edmondson, Jr. and Diane L. Edmondson - Page 8

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                                       OPINION                                        
          Issue 1.  Innocent Spouse                                                   
               Spouses who file a joint income tax return generally are               
          jointly and severally liable for its accuracy and the tax due,              
          including any additional taxes, interest, or penalties determined           
          on audit of the return.  Sec. 6013(d)(3); Ness v. Commissioner, 954         
          F.2d 1495, 1497 (9th Cir. 1992), revg. 94 T.C. 784 (1990); Guth v.          
          Commissioner, 897 F.2d 441, 442 (9th Cir. 1990), affg. T.C. Memo.           
          1987-522; Price v. Commissioner, 887 F.2d 959, 961 n.3 (9th Cir.            
          1989), revg. an Oral Opinion of this Court.  However, pursuant to           
          section 6013(e), a spouse (commonly referred to as an innocent              
          spouse) can be relieved of tax liability if that spouse proves: (1)         
          A joint return was filed; (2) the return contained a substantial            
          understatement of tax attributable to grossly erroneous items of            
          the other spouse; (3) in signing the return, the spouse seeking             
          relief did not know, and had no reason to know, of the substantial          
          understatement; and (4) it would be inequitable to hold the spouse          
          seeking relief liable for the understatement.  Sec. 6013(e)(1);             
          Guth v. Commissioner, supra at 443; Price v. Commissioner, supra at         
          961-962.  The spouse seeking relief bears the burden of proving             
          that each of the four section 6013(e) requirements has been                 
          satisfied.  Purcell v. Commissioner, 826 F.2d 470, 473 (6th Cir.            
          1987), affg. 86 T.C. 228 (1986). Failure to meet any one of the             
          statutory requirements will disqualify an individual from innocent          






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