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contents of the storage space were auctioned off when Mr. Womack
was unable to make the rental payment on the storage space.
OPINION
Normally, spouses who have filed a joint return are jointly
and severally liable for the tax due. Sec. 6013(d)(3). However,
section 6013(e)(1) relieves a spouse of liability for the tax,
including interest, penalties, and other amounts, attributable to
the substantial understatement of tax of the other spouse, if the
alleged innocent spouse meets the following requirements: (1) A
joint Federal income tax return was filed; (2) there is a
substantial understatement of tax attributable to grossly
erroneous items of the other spouse; (3) in signing the return,
the alleged innocent spouse did not know, and had no reason to
know, of the substantial understatement; and (4) taking into
account all the facts and circumstances, it would be inequitable
to hold the alleged innocent spouse liable for the deficiency
attributable to such substantial understatement.5 Sec.
6013(e)(1).
5 In addition, in order for a taxpayer to be eligible for
relief, the liability arising from the above-described
understatement of tax must exceed 10 percent of the taxpayer's
preadjustment year adjusted gross income, where that adjusted
gross income is $20,000 or less. Sec. 6013(e)(4)(A). The
preadjustment year means the most recent taxable year of the
taxpayer ending before the date the deficiency notice is mailed,
here 1992. Sec. 6013(e)(4)(C). Section 6013(e)(4) does not
apply to any liability attributable to the omission of an item
from gross income. Sec. 6013(e)(4)(E). Here petitioner's
preadjustment year adjusted gross income was $6,183, so any
section 6013(e)(4) requirement is satisfied.
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