David R. Braden and Sharon F. Braden - Page 8




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          required to be shown on the return is computed on their combined            
          income, expenses, and credits, and their liability for the tax is           
          joint and several.  See sec. 6013(d)(3).                                    
               In 1971, Congress enacted section 6013(e) to ameliorate                
          perceived inequities resulting from the imposition of joint and             
          several liability in certain circumstances.  See S. Rept. 91-1537           
          (1970), 1971-1 C.B. 606.  Section 6013(e), as originally enacted,           
          offered relief from joint and several liability only in cases               
          involving omitted income where the spouse seeking relief could              
          prove that he or she met the strict requirements of subsection              
          (e).                                                                        
               In 1984, section 6013(e) was amended to permit a spouse to             
          seek relief from joint and several liability in cases where an              
          understatement of tax resulted from erroneous deductions claimed            
          on a joint tax return.  See Deficit Reduction Act of 1984, Pub.             
          L. 98-369, sec. 424, 98 Stat. 494, 801; H. Conf. Rept. 98-861, at           
          1119 (1984), 1984-3 C.B. (Vol. 2) 1, 373.  Section 6013(e)(1), as           
          amended, provided that a spouse could be relieved of joint and              
          several liability if the spouse proved that:  (1) A joint return            
          was filed; (2) the return contained a substantial understatement            
          of tax attributable to grossly erroneous items of the other                 
          spouse; (3) in signing the return, the spouse seeking relief did            
          not know, and had no reason to know, of the substantial                     
          understatement; and (4) under the circumstances it would be                 






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