- 26 -
(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 under-
statement.
(2) Grossly Erroneous Items.--For purposes of this
subsection, the term "grossly erroneous items" means,
with respect to any spouse--
(A) any item of gross income attributable to
such spouse which is omitted from gross income,
and
(B) any claim of a deduction, credit, or
basis by such spouse in an amount for which there
is no basis in fact or law.
The spouse claiming innocent spouse relief must prove that
all four requirements prescribed by section 6013(e)(1) are
satisfied in order to be entitled to such relief.22 Resser v.
22 Neither party advances any argument regarding sec.
(continued...)
Page: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 NextLast modified: May 25, 2011