- 10 - 1. Respondent’s Justification as to the Asserted 1990 Deficiency Respondent had a reasonable basis in law and fact for concluding that petitioner and Theron were jointly liable for a deficiency as determined in the notice of deficiency for taxable year 1990. Theron had admitted that he had unreported income in 1990 as determined in the criminal net worth computation. As we stated in Livingston v. Commissioner, T.C. Memo. 2000-121, Theron’s admission was strong evidence of the validity of the 1990 criminal net worth computation and consequently of the 1990 civil net worth computation, upon which the 1990 deficiency determination was predicated. 2. Respondent’s Justification as to Denial of Petitioner’s Claim for Relief From Joint Liability a. Period Before Repeal of Former Section 6013(e) As described above, during the administrative proceedings and throughout the trial of this case, the applicable statutory provision for relief from joint liability was former section 6013(e), which was repealed shortly after the trial and replaced by section 6015, effective July 22, 1998. See RRA sec. 3201(a), (e)(1). Under former section 6013(e), to qualify for relief, a taxpayer had to establish that: (1) A joint Federal income tax return was filed; (2) there was a substantial understatement of tax attributable to grossly erroneous items of the other spouse; (3) in signing the return, the spouse seeking relief did notPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011