- 23 - OPINION Section 6013(a) permits a husband and wife to elect to file a joint tax return. Together with section 1(a), this joint tax return option is a valuable privilege, which ordinarily operates to lower the tax liability for the income reported on the tax return. The price taxpayers must pay for this benefit is joint and several liability. Sec. 6013(d)(3); Stevens v. Commissioner, 872 F.2d 1499, 1503 (11th Cir. 1989), affg. T.C. Memo. 1988-63; Murphy v. Commissioner, 103 T.C. 111, 117 (1994); Bokum v. Commissioner, 94 T.C. 126, 151-152 (1990), affd. 992 F.2d 1132 (11th Cir. 1993); Pesch v. Commissioner, 78 T.C. 100, 129-130 (1982). Under section 6013(e),5 however, a spouse may be relieved of 5 Sec. 6013(e) provides, in pertinent part, as follows: SEC. 6013. JOINT RETURNS OF INCOME TAX BY HUSBAND AND WIFE. * * * * * * * (e) Spouse Relieved of Lability in Certain Cases.-- (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 (continued...)Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Next
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