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were passed through to intervenor from the Shorthorn partnership
for 1985 and 1986. The denial of the losses resulted in
computational adjustments owing by petitioner and intervenor,
which were timely assessed as deficiencies on April 13, 1998.
On December 30, 1986, petitioner and intervenor filed a
joint petition for summary dissolution of their marriage. In the
their dissolution petition, petitioner and intervenor stated that
they had no community assets or liabilities. The divorce became
final in 1987. The divorce was amicable.
On July 16, 1998, after respondent mailed a notice of
computational adjustment to petitioner and offset two of her
income tax refunds from later year returns,4 petitioner filed
with respondent a Form 8857 requesting relief from joint and
several liability. On February 23, 2000, respondent mailed to
petitioner a determination letter denying petitioner’s request
for relief from joint and several liability under both section
6015(b) and (c). The explanation accompanying the denial states:
Your claim for innocent spouse has been disallowed
under IRC 6015(b) & IRC 6015(c). You did not meet one
of the qualifying factors required under 6015(b) and
6015(c) lack of knowledge of the understatement.
4According to petitioner’s testimony at trial, respondent
initially offset two of her income tax refunds. One of
petitioner’s tax refunds was returned to her after she filed her
request for relief from joint and several liability. Respondent
has retained one of her tax refunds.
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