Herbert L. Mitchell, deceased, and Ella Marie Mitchell - Page 9

                                                - 9 -                                                  

                              (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                           
                  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.                                                 

            The requirements of subparagraphs (A) through (E) are stated in                            
            the conjunctive; that is, a taxpayer must satisfy all of them to                           
            be entitled to relief under section 6015(b)(1).  There is no                               
            dispute in the instant case that petitioner satisfies (A) and                              
            (E); that is, that she made a joint return with her husband and                            
            that an appropriate election for relief has been made.                                     
            Respondent, however, contends that petitioner fails to satisfy                             
            subparagraphs (B), (C), and (D).  In accordance with Cheshire v.                           
            Commissioner, supra, we find that she does not satisfy                                     
            subparagraph (C).                                                                          

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011