- 4 - OPINION Section 6013(d)(3) provides the general rule imposing joint and several liability on spouses that file a joint return. The so-called innocent spouse provision of section 6013(e) is an exception to this general rule. Under section 6013(e), Mrs. Vega will be relieved of liability for tax (including interest, penalties, and other amounts) if she establishes that: (1) A joint Federal income tax return was filed; (2) there is a substantial understatement of tax attributable to grossly erroneous items of Mr. Vega; (3) in signing the return, Mrs. Vega did not know, and had no reason to know, of the substantial understatement; and (4) taking into account all of the facts and circumstances, it would be inequitable to hold Mrs. Vega liable for the deficiency attributable to such substantial understatement. Mrs. Vega bears the burden of proving she meets each of the four elements. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Her failure to establish any of the elements will preclude innocent spouse relief. Bokum v. Commissioner, 94 T.C. 126, 138 (1990), affd. 992 F.2d 1132 (11th Cir. 1993). We hold that Mrs. Vega does not qualify for protection as an innocent spouse for 1988 and 1989. Mrs. Vega has failed to establish that (1) the deductions totaling $64,725 in 1988 and $26,421 in 1989 were attributable to grossly erroneous items, and (2) it would be inequitable to hold her liable for the amounts atPage: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011