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amounts) for such taxable year to the extent such
liability is attributable to such substantial
understatement.
The taxpayer has the burden of proving that he or she meets
each of these requirements; a failure to prove any one of these
requirements will prevent the taxpayer from qualifying for
relief. Stevens v. Commissioner, 872 F.2d 1499, 1504 (11th Cir.
1989), affg. T.C. Memo. 1988-63; Bokum v. Commissioner, 94 T.C.
126, 138 (1990), affd. 992 F.2d 1132 (11th Cir. 1993).
Petitioners filed a joint tax return for the year at issue
and substantially understated their tax. Petitioners argue that
if the Court holds for respondent on the issue of the inclusion
of the commission in basis, then such inclusion was grossly
erroneous, and Mrs. Haymond is an innocent spouse.
For items of basis, "grossly erroneous items" means any
claim in an amount for which there is no basis in fact or law.
Sec. 6013(e)(2)(B). There is no basis in law or fact if the
claim is fraudulent, phony, frivolous, or groundless. Feldman v.
Commissioner, 20 F.3d 1128, 1135 (11th Cir. 1994), affg. T.C.
Memo. 1993-17; Russo v. Commissioner, 98 T.C. 28, 32 (1992). The
disallowance of an item is not, in and of itself, proof of the
lack of basis in fact or in law. Feldman v. Commissioner, supra
at 1136; Russo v. Commissioner, supra.
The claim in the instant case was not fraudulent, phony,
frivolous, or groundless. The existence of the proposed
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