Ronnie D. Wilson and Linda K. Lagadinos, f.k.a. Linda K. Wilson - Page 9

                                        - 9 -                                         
          conclude that Linda did not know, and had no reason to know, of             
          the substantial understatement of tax attributable to the                   
          omission from gross income.                                                 
          III.  Inequity Requirement                                                  
               Linda must prove that, taking into account all the facts and           
          circumstances, it would be inequitable to hold her liable for the           
          deficiency.  Sec. 6013(e)(1)(D).  In determining whether it would           
          be inequitable to hold Linda liable, we consider whether she                
          "significantly benefitted" from the understatement of tax.                  
          Buchine v. Commissioner, 20 F.3d 173, 181 (5th Cir. 1994), affg.            
          T.C. Memo. 1992-36; Belk v. Commissioner, 93 T.C. 434, 440                  
          (1989); sec. 1.6013-5(b), Income Tax Regs.  Normal support is not           
          considered a significant benefit.  Terzian v. Commissioner, 72              
          T.C. 1164, 1172 (1979); sec. 1.6013-5(b), Income Tax Regs.  We              
          consider the lifestyle to which the taxpayer is accustomed when             
          considering what constitutes normal support.  Sanders v. United             
          States, supra at 168; Belk v. Commissioner, supra.                          
               Respondent contends that Linda significantly benefited from            
          the understatement, because in 1989 Ronnie bought her a $23,000             
          Cadillac.  At trial, the Court asked Linda's counsel to explain             
          why the Cadillac did not constitute a substantial benefit to                
          Linda.  Linda's counsel failed to adequately address this                   
          question.  Moreover, Linda failed to address this issue in both             
          her opening and reply briefs.  In essence, Linda did not present            






Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011