- 7 -
Respondent determined that the amounts of unreported
embezzlement income in 1990 and 1991 were $115,500 and $168,500,
respectively. The parties now agree, however, that the actual
amounts of unreported income were $136,901 and $141,000 for 1990
and 1991, respectively.
OPINION
As a general rule, a husband and wife who file joint tax
returns are jointly and severally liable for Federal income tax
due on their combined incomes. Sec. 6013(d)(3); Resser v.
Commissioner, 74 F.3d 1528, 1534 (7th Cir. 1996), revg. T.C.
Memo. 1994-241; Park v. Commissioner, 25 F.3d 1289, 1292 (5th
Cir. 1994), affg. T.C. Memo. 1993-252. Section 6013(e), however,
mitigates this general rule to some extent. Park v.
Commissioner, supra. Nonetheless, Congress regards joint and
several liability as an important counterpart to the privilege of
filing joint tax returns, which generally results in a lower tax
on the combined incomes of spouses than would be due were they to
file separate returns, and any relaxation of the rule of joint
and several liability depends upon compliance with the conditions
of section 6013(e). Sonnenborn v. Commissioner, 57 T.C. 373,
380-381 (1971). However, because of its remedial purpose, the
"innocent spouse" rule, as section 6013(e) is commonly referred,
must not be given an unduly narrow or restrictive reading.
Friedman v. Commissioner, 53 F.3d 523, 528-29 (2nd Cir. 1995),
affg. in part and revg. in part T.C. Memo. 1993-549; Sanders v.
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