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sec. 6013(e)(1)(A); (2) there was a substantial understatement of
tax attributable to grossly erroneous items of one spouse; sec.
6013(e)(1)(B); (3) at the time of signing the return, the other
spouse did not know and had no reason to know that there was such
an understatement; sec. 6013(e)(1)(C); (4) taking into account
all the facts and circumstances, it would be inequitable to hold
the other spouse liable for the deficiency in tax for such
taxable year attributable to the understatement. Sec.
6013(e)(1)(D).
For purposes of section 6013(e), an understatement of tax is
substantial if it exceeds $500. Sec. 6013(e)(3). With respect
to grossly erroneous deductions, the understatement must exceed a
specified percentage of the putative innocent spouse’s gross
income for the “preadjustment year”, which is the taxable year
immediately preceding the year in which the statutory notice of
deficiency was issued. Sec. 6013(e)(4).
The taxpayer has the burden of proving each element by a
preponderance of the evidence. Rule 142(a); Stevens v.
Commissioner, 872 F.2d 1499, 1504 (11th Cir. 1989), affg. T.C.
Memo. 1988-63; Purcell v. Commissioner, 826 F.2d 470, 473 (6th
Cir. 1987), affg. 86 T.C. 228 (1986); Sonnenborn v. Commissioner,
57 T.C. 373, 382 (1971). Failure to carry that burden on any one
of the elements will prevent a taxpayer from qualifying for
innocent spouse relief. Purificato v. Commissioner, 9 F.3d 290,
293 (3d Cir. 1993), affg. T.C. Memo. 1992-580; Stevens v.
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