Dorchester Industries Incorporated, et al. - Page 33

                                       - 33 -                                         
          Wheaton.  Dorchester is entitled to no relief on account of                 
          respondent’s agreement with Mary Wheaton.                                   
               Also, we fail to see that any protected right or interest of           
          Frank Wheaton is affected by the innocent spouse agreement.                 
          First, nothing in either the November 3 letter, the November 6              
          letter, or the November 6 response makes Frank Wheaton’s income             
          tax liability contingent in any way upon Mary Wheaton’s                     
          continuing to be liable for her joint return liability.  Second,            
          section 6013(d)(3) provides that the signers of a joint return              
          are jointly and severally liable for any tax due.  That fact was            
          a significant factor in our denying relief to taxpayers making              
          claims similar to Frank Wheaton’s in Himmelwright v.                        
          Commissioner, T.C. Memo. 1988-114, and Garvey v. Commissioner,              
          T.C. Memo. 1993-354.  Frank Wheaton’s primary concern appears to            
          be economic; he expected Mary Wheaton to contribute to payment of           
          the deficiency.  As explained in Estate of Ravetti v.                       
          Commissioner, T.C. Memo. 1989-45, however, the right of                     
          contribution with which Frank Wheaton is concerned is a matter to           
          be resolved under State law.  Frank Wheaton is entitled to no               
          relief on account of respondent’s agreement with Mary Wheaton.              
          III.  Conclusion                                                            
               Dorchester, Frank Wheaton, and respondent entered into a               
          settlement agreement in the docketed cases.  For the reasons                
          stated, we shall (1) grant respondent’s motion with respect to              
          Dorchester in docket No. 20515-93, (2) grant respondent’s motions           




Page:  Previous  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  Next

Last modified: May 25, 2011