- 39 -
Commissioner, 476 F.2d 502, 505, 507 (10th Cir. 1973), affg. in
part and revg. in part. T.C. Memo. 1971-194; Neaderland v.
Commissioner, 52 T.C. 532, 541 (1969), affd. 424 F.2d 639 (2d
Cir. 1970); see also Murphy v. Commissioner, T.C. Memo. 1995-76.
We have just held that the underpayments in petitioners'
income taxes were due to fraud on the part of petitioner for
purposes of section 6653(b). We need not repeat our analysis
here. We reject petitioners' claim that the period of limitation
has expired on any of the years in issue.25
Issue 6. Innocent Spouse
Mrs. Fields alleges that she is an innocent spouse under
section 6013(e). Mrs. Fields alleges that she was unaware of
petitioner's business activities, and that she had no knowledge
of the subject transactions.
Spouses generally are jointly and severally liable for
income taxes due on a joint Federal income tax return. Sec.
6013(d)(3); Bliss v. Commissioner, 59 F.3d 374, 377 (2d Cir.
1995), affg. T.C. Memo. 1993-390. The "innocent spouse"
provision of section 6013(e) relieves a spouse of joint Federal
income tax liability if the following four elements are met:
(1) The spouses filed a joint Federal income tax return, (2) the
return reflected a substantial understatement of tax attributable
25 Based on this holding, we do not consider respondent's
alternative argument that petitioners' 1980 and 1981 taxable
years are open under the 6-year rule of sec. 6501(e)(1)(A).
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