- 23 - 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 aPage: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
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