Fredie Lynn Charlton - Page 11

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               2.   Whether Charlton Is Entitled to Relief From Joint and             
                    Several Liability for Income Tax for 1994 Under Section           
                    6015(b)                                                           
               Charlton contends that he is entitled to relief from joint             
          and several liability for income tax for 1994 under section                 
          6015(b).                                                                    
               Section 6015(b)(1) provides that if:                                   
                    (A) a joint return has been made for a taxable                    
                    year;                                                             
                    (B) on such return there is an understatement of                  
                    tax attributable to erroneous items of one                        
                    individual filing the joint return;                               
                    (C) the other individual filing the joint return                  
                    establishes that in signing the return he or she                  
                    did not know, and had no reason to know, that                     
                    there was such understatement;                                    
                    (D) taking into account all the facts and                         
                    circumstances, it is inequitable to hold the other                
                    individual liable for the deficiency in tax for                   
                    such taxable year attributable to such                            
                    understatement; and                                               
                    (E) the other individual elects (in such form as                  
                    the Secretary may prescribe) the benefits of this                 
                    subsection not later than the date which is 2                     
                    years after the date the Secretary has begun                      
                    collection activities with respect to the                         
                    individual making the election,                                   
               then the other individual shall be relieved of                         
               liability for tax (including interest, penalties, and                  
               other amounts) for such taxable year to the extent such                
               liability is attributable to such understatement.                      
               Respondent concedes that Charlton qualifies under section              
          6015(b)(1)(A) because he filed a joint Federal income tax return            







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