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$465 per month. During 1991, 1992, and 1993, Linda received
wages in the amounts of $37,882, $30,085, and $27,191,
respectively. Petitioner's employment was "sporadic". He had
income in the amounts of $4,013 for 1992 and $2,203 for 1993.
During 1991, when petitioner reentered college, Linda began
embezzling funds from Datanet. She embezzled $17,450, $25,997,
and $28,379 during 1991, 1992, and 1993, respectively. These
funds were spent on food, clothing, rent, furniture, and other
living expenses, including expenses for petitioner's education.
Petitioner and Linda took vacations to the beach each year and
also a trip to Colorado. Linda was arrested in September 1993,
and convicted on March 25, 1994.
Petitioner and Linda filed joint Federal income tax returns
for each of the years in issue reporting wages discussed above.
Petitioner and Linda did not report the amounts embezzled from
Datanet. Petitioner and Linda deducted losses from the alleged
accounting service operated by Linda. These losses were
fictitious. Respondent determined that the embezzled funds
constituted gross income and disallowed the losses. Respondent
also determined that accuracy-related penalties for negligence
were due. Petitioner does not contest any of the adjustments,
but rather contends that he is entitled to relief of liability
under the so-called innocent spouse provisions contained in
section 6013(e).
Section 6013(a) permits a husband and wife to file a joint
income tax return. When a joint return is filed, both spouses
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