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(A) a joint return has been made for a taxable
year;
(B) on such return there is an understatement
of tax attributable to erroneous items of 1 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
election * * *
Respondent’s determination states that petitioner’s request
for relief from joint and several liability is denied because
petitioner failed to show her “lack of knowledge of the
understatement.” While respondent’s determination appears to
have focused on petitioner’s actual knowledge rather than her
“reason to know”, petitioner bears the burden of proving all of
the elements entitling her to relief. Mueller v. Commissioner,
T.C. Memo. 2001-178; Kalinowski v. Commissioner, T.C. Memo. 2001-
21 (“Petitioner carries the burden of proof as to each of these
elements.”); In re French, 242 Bankr. 369, 377 n.5 (Bankr. N.D.
Ohio 1999) (applying prior law under former section 6013(e) to
determine burden of proof under section 6015). Petitioner
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