- 13 -
Because we find that petitioners improperly excluded from
income the 1988 distribution, the next issue we must decide is
whether petitioner Harriett Nixon Hall is entitled to relief from
liability as an "innocent spouse" under section 6013(e).
Section 6013(d)(3) provides that when a joint return is
filed, the parties are jointly and severally liable for the
amount of the tax due. One exception to this rule is the
innocent spouse provision contained in section 6013(e) which
provides:
(e) Spouse Relieved of Liability in Certain Cases.--
(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.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011