Rosemarie Meyer - Page 23

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          her reported adjusted gross income for the tax year at issue.               
          See Pietromonaco v. Commissioner, 3 F.3d 1342, 1345 (9th Cir.               
          1993), revg. T.C. Memo. 1991-361.  Based upon the foregoing, Mrs.           
          Meyer should have known of the income-producing transaction the             
          putative culpable spouse failed to report on their joint return,            
          thus giving rise to the substantial understatement.                         
          Issue 3.  Whether It Is Inequitable to Hold Petitioner Liable for           
          the Substantial Understatement of Tax                                       
               The Court finds it not inequitable to hold Mrs. Meyer liable           
          for the substantial understatement of tax.  A taxpayer claiming             
          innocent spouse relief must demonstrate that, given all of the              
          facts and circumstances, it would contravene equitable notions to           
          hold the petitioner liable for the substantial understatement               
          attributable to the putative culpable spouse.  Sec.                         
          6013(e)(1)(D).                                                              
               In determining whether it is inequitable to hold a spouse              
          jointly liable, we have in the past considered the following                
          factors:  (1) Whether the petitioner has enjoyed a significant              
          benefit as a result of the substantial understatement of tax,               
          Estate of Krock v. Commissioner, 93 T.C. 672, 678 (1989); (2)               
          whether the petitioner has been deserted by, divorced, or                   
          separated from the putative culpable spouse, section 1.6013-5(b),           
          Income Tax Regs.; and (3) all other relevant facts and                      
          circumstances.  Sec. 6013(e)(1)(D).  The statute no longer                  
          requires consideration of whether the innocent spouse received a            





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