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by $24,794 for 1987 and decreased them by $4,068 for 1988.
OPINION
Issue 1. Innocent Spouse
The adjustments giving rise to the deficiencies (the
understatement) fall into three categories: Unreported income of
Mr. Marzullo from his employment at the College; understated income
of MPM; and disallowed itemized deductions. Mrs. Marzullo contends
that she is not liable for the understatement attributable to any
of these items because she qualifies for tax relief as an innocent
spouse pursuant to section 6013(e).
Spouses who file a joint return generally are jointly and
severally liable for its accuracy and the tax due, including any
additional taxes, interest, or penalties determined on audit of the
return. Sec. 6013(d)(3). However, pursuant to section 6013(e), a
spouse (commonly referred to as an innocent spouse) can be relieved
of tax liability if that spouse proves: (1) A joint return was
filed; (2) the return contained a substantial understatement of tax
attributable to grossly erroneous items of the other spouse; (3) in
signing the return, the spouse seeking relief did not know, and had
no reason to know, of the substantial understatement; and (4) it
would be inequitable to hold the relief-seeking spouse liable for
the deficiency attributable to the understatement. Sec.
6013(e)(1). The spouse seeking relief bears the burden of proving
that each of the four requirements has been satisfied. In other
words, failure to prove any one of the statutory requirements will
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