Michael B. Butler and Jean Butler - Page 9




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          during 1992 was not reported on petitioners' 1992 Federal income            
          tax return.3  Petitioners also concede the receipt of $18 in                
          interest income during 1992 from BGE which was not reported on              
          their 1992 Federal income tax return.                                       
          Discussion                                                                  
               Petitioners filed their petition in the instant case in                
          response to a notice of deficiency.  In the petition, petitioner            
          claimed that she was entitled to innocent spouse relief pursuant            
          to section 6013(e).  After the trial and briefing of the instant            
          case, Congress enacted section 6015 as part of the Internal                 
          Revenue Service Restructuring and Reform Act of 1998, Pub. L.               
          105-206, sec. 3201(a), 112 Stat. 685, 734, and simultaneously               
          repealed section 6013(e).  The effective date of new section 6015           
          is July 22, 1998.  Accordingly, petitioner can no longer seek               
          relief pursuant to section 6013(e).  The parties, however, have             
          treated the petition as an election of relief pursuant to section           
          6015(b)(1).4  The parties agreed to waive any right to a new                
          trial for the purpose of section 6015 and concede that the issues           
          that were tried pursuant to section 6013(e) are the same issues             
          the Court should decide pursuant to section 6015(b)(1) except,              

          3    Petitioner's husband testified that he did not know why the            
          income from BGE was omitted from petitioners' 1992 joint Federal            
          income tax return.                                                          
          4    We treat petitioner's innocent spouse claims pursuant to               
          sec. 6015 as an amendment to the petition to conform the petition           
          to the evidence.  See Rule 41(b).                                           





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