Julian O. Von Kalinowski and Penelope J. Von Kalinowski - Page 21

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          benefit from the tax savings generated by the understatement.               
          Whether the relief-seeking spouse has significantly benefited               
          from the understatement in tax is a factor to be considered in              
          weighing the equities.  See sec. 1.6013-5(b), Income Tax Regs.              
          Transfers of property to the relief-seeking spouse are relevant             
          in determining the existence of a significant benefit, and such             
          transfers are not limited to the tax years to which the                     
          understatement relates.  See id.  Mr. Von Kalinowski testified              
          that he contributed approximately $500,000 to petitioner’s travel           
          agency over the course of the 15-year period in which the                   
          business was operational.  These contributions were of obvious              
          benefit to petitioner, and the amount of such transfers renders             
          petitioner’s argument that she did not significantly benefit from           
          the tax savings unpersuasive.                                               
               Finally, a factor which may be taken into account in                   
          weighing the equities is whether the failure to report the                  
          correct tax liability in this case resulted from concealment,               
          overreaching, or other wrongdoing on the part of the spouse not             
          seeking relief.  See Hayman v. Commissioner, supra at 1262; McCoy           
          v. Commissioner, 57 T.C. 732, 735 (1972).  No such untoward                 
          circumstances are present in this case.  Rather, the                        
          understatement in tax is attributable to a mistaken belief on the           
          part of Mr. Von Kalinowski as well as his accountant as to the              
          legitimacy of the tax shelter deductions.  Under these                      
          circumstances, we perceive no inequity in holding both spouses to           

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