- 26 -
ended. Mysse v. Commissioner, 57 T.C. at 700. Mrs. Meyer's
separation from her husband is only one factor to be considered
in evaluating the issue of inequity. Id. We do not find it
decisive. Mr. Meyer, although jailed, "has not disappeared and
left * * * [Mrs. Meyer] to 'face the music' alone, and she has
not been deserted in the sense foreseen by the legislators who
enacted the innocent spouse defense." Hayman v. Commissioner,
992 F.2d at 1263. In fact, he testified on her behalf and has
himself acceded to the deficiencies asserted by respondent.
Finally, whether the failure to report correctly tax
liability stems from evasiveness or deceit on the part of the
"guilty" spouse is also relevant. Since Mrs. Meyer has not shown
that the substantial understatement of tax and income arose from
any dishonesty or concealment on her husband's part, it is not
inequitable to hold them both jointly liable. Hayman v.
Commissioner, 992 F.2d at 1262; McCoy v. Commissioner, 57 T.C. at
735; Prince v. Commissioner, T.C. Memo. 1995-368.
For the foregoing reasons, we hold that petitioner Rosemarie
Meyer is not an innocent spouse within the meaning of section
6013(e) as to the deficiency, additions, and penalties in income
tax for the relevant year attributable to the grossly erroneous
items of both petitioner and her husband.
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