-14-
on audit of the return. Sec. 6013(d)(3). However, pursuant to
section 6013(e), a spouse (or innocent spouse) can be relieved of
tax liability if that spouse proves: (1) A joint income tax 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)
under the circumstances it would be inequitable to hold the spouse
seeking relief liable for the understatement. Sec. 6013(e). The
spouse seeking relief bears the burden of proving that each of the
four elements of the statute has been satisfied, and failure to
satisfy any one of the elements will prevent innocent spouse relief.
Bokum v. Commissioner, 94 T.C. 126, 138-139 (1990), affd. 992 F.2d
1132 (11th Cir. 1993).
Items of omitted gross income are automatically considered to
be grossly erroneous,8 whereas disallowed deductions must be proven
8 Sec. 6013(e)(2) provides:
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.
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