- 13 -
We have found that petitioners filed a joint return for each of
the years in issue, and respondent concedes that there was an
understatement of tax attributable to Mr. Von Kalinowski.
Accordingly, we shall address whether petitioner lacked actual
and constructive knowledge of the understatements as required by
section 6015(b)(1)(C) as well as whether it is inequitable to
hold petitioner liable for the understatements as required by
section 6015(b)(1)(D). Petitioner carries the burden of proof as
to each of these elements. See Rule 142(a).
B. Relation Between Sec. 6015(b)(1) and Former Sec. 6013(e)
Before delving into the particulars of section 6015(b)(1),
we pause to note its relation to former section 6013(e). In
1971, Congress enacted section 6013(e) in order to correct
perceived grave injustices resulting from the imposition of joint
and several liability. See S. Rept. 91-1537, at 2 (1970), 1971-1
C.B. 606, 607; see also Act of Jan. 12, 1971, Pub. L. 91-679,
sec. 1, 84 Stat. 2063 (enacting sec. 6013(e)), as amended by the
Deficit Reduction Act of 1984, Pub. L. 98-369, sec. 424, 98 Stat.
494, 801. Section 6013(e), as amended, provided that a spouse
could be relieved of joint and several liability if the spouse
proved that: (1) A joint income tax 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 relief-seeking spouse did not know, and had no
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011