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OPINION
A husband and wife who file a joint return generally are
jointly and severally liable for the tax due. Sec. 6013(d)(3).
A taxpayer will be relieved of liability as an innocent spouse,
however, to the extent the taxpayer establishes that: (1) A
joint Federal income tax return was filed; (2) on the return
there is a substantial understatement of tax attributable to
grossly erroneous items of the other spouse; (3) in signing the
return, the taxpayer 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
the taxpayer liable for the deficiency attributable to the
substantial understatement. Sec. 6013(e)(1). Linda bears the
burden of proving that she satisfies each of the four
requirements. Rule 142(a); Flynn v. Commissioner, 93 T.C. 355,
359 (1989). Her failure to satisfy any one of the requirements
will preclude relief from liability. Park v. Commissioner, 25
F.3d 1289, 1292 (5th Cir. 1994), affg. T.C. Memo. 1993-252; Bokum
v. Commissioner, 94 T.C. 126, 138 (1990), affd. 992 F.2d 1132
(11th Cir. 1993).
Respondent concedes that a joint return was filed for the
1989 tax year. She contends, however, that Linda does not meet
the remaining requirements. We discuss these requirements in
turn.
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Last modified: May 25, 2011