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On May 23, 2000, petitioner timely mailed to this Court a
petition for redetermination of relief from joint and several
liability on a joint return.
On July 11, 2000, respondent mailed a notice to intervenor,
informing him that petitioner had filed a petition with this
Court requesting relief from joint and several liability and that
he had a right to intervene. On September 19, 2000, intervenor
filed a notice of intervention with this Court, requesting that
petitioner’s petition for relief from joint and several liability
be denied.
ULTIMATE FINDINGS OF FACT
A reasonably prudent taxpayer in the circumstances of
petitioner would have known that the tax liabilities stated on
the returns were erroneous or that further investigation was
warranted.
Petitioner had no actual knowledge of the facts resulting in
the disallowance of the Shorthorn partnership losses.
OPINION
With certain exceptions, a husband and wife may elect to
file a joint return based on their aggregate taxable income. See
sec. 6013(a). After making the election to file a joint return,
each of the spouses is jointly and severally liable for the
entire tax due. Sec. 6013(d)(3). “One of the fundamental
characteristics of joint and several liability is that the
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