- 2 - *This opinion supplements our previously filed Memorandum Findings of Fact and Opinion in Kelly v. Commissioner, T.C. Memo. 1996-529, filed Dec. 2, 1996. deficiencies, additions to tax, and penalties, and denied the claim of petitioner Ruth Kelly (petitioner) to relief from liability as an innocent spouse under section 6013(e).1 The Opinion is incorporated herein by this reference. Petitioner filed a timely motion for reconsideration, pursuant to Rule 161. Respondent filed a notice of objection and memorandum of argument and authorities. Petitioner Edward Kelly has not filed a response to petitioner's motion. Petitioner argues that the Court incorrectly held that the deductions for ordinary losses and for business expenses claimed on the joint returns were not "grossly erroneous" within the meaning of section 6013(e)(2)(B), as having "no basis in fact or law", that upon reconsideration, the Court should conclude that the husband's loss deductions claimed on the joint return satisfied the "grossly erroneous" test, and that the Court should proceed to determine that petitioner satisfied each of the other requirements for innocent spouse status. Specifically, petitioner argues that the Court, in rejecting her argument that the deductions claimed were "phony", failed to address whether they were "groundless" or "frivolous", and that, 1Except where otherwise noted, all section references are to sections of the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011