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claimed 1988 NOL deduction.16
Section 6013(e) provides in pertinent part:
(e) Spouse Relieved of Liability in Certain Cases.--
(1) In general.--Under regulations prescribed by
the Secretary, if--
(A) a joint return has been made under this
section for a taxable year,
(B) on such return there is a substantial
understatement of tax attributable to grossly
erroneous items of one spouse,
(C) the other spouse establishes that in
signing the return he or she did not know, and had
no reason to know, that there was such substantial
understatement, and
(D) taking into account all the facts and
circumstances, it is inequitable to hold the other
spouse liable for the deficiency in tax for such
taxable year attributable to such substantial
understatement,
then the other spouse shall be relieved of liability
for tax (including interest, penalties, and other
amounts) for such taxable year to the extent such
liability is attributable to such substantial under-
statement.
(2) Grossly Erroneous Items.--For purposes of this
subsection, the term "grossly erroneous items" means,
with respect to any spouse--
(A) any item of gross income attributable to
such spouse which is omitted from gross income,
and
(B) any claim of a deduction, credit, or
basis by such spouse in an amount for which there
is no basis in fact or law.
16 Ms. Gordon does not contend that the Gordons are entitled to
the claimed 1988 NOL deduction.
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