- 14 - 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.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011