- 46 -
ended 1988. Accordingly, we sustain respondent's determination
as to the addition to tax under section 6651(a)(1).
Innocent Spouse Relief
Petitioners contend that Ms. Walters qualifies for relief
under the innocent spouse provisions of section 6013(e) from
liability for the deficiencies and additions to tax determined
for years ended 1984, 1985, and 1986 (the applicable years).
Respondent contends, however, that Ms. Walters is not entitled to
relief under section 6013(e).
Spouses who file a joint income tax return generally are
jointly and severally liable for its accuracy and the tax due,
including any additional taxes, interest, or additions to tax
determined on audit of the return. Sec. 6013(d)(3). However,
pursuant to section 6013(e), a spouse can be relieved of tax
liability if that spouse shows that he or she qualifies as an
"innocent spouse". To qualify as an innocent spouse under
section 6013(e), a taxpayer must prove: (1) He or she filed a
joint return for the years in issue; (2) there is a substantial
understatement of income tax attributable to grossly erroneous
items of the other spouse on the return; (3) he or she did not
know or have reason to know of the substantial understatement
when the return was signed; and (4) it would be inequitable to
hold the "innocent" spouse liable for the deficiency attributable
to the substantial understatement. Sec. 6013(e)(1). Failure to
meet any of the requirements precludes a taxpayer from qualifying
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