Fay Dalton, Petitioner, and Robert Dalton, Intervenor - Page 8




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          limitations for filing a timely claim for refund based upon when            
          a tax is “paid”.                                                            

               Courts interpreting * * * [the sec. 6511(a) limitation                 
               on filing a claim for refund, and not the sec. 6511(b)                 
               limitation on the amount of the refund] have held that                 
               the limitation period begins to run as to an entire tax                
               liability only when the last dollar of the liability is                
               paid, reasoning that “the tax liability is unitary and                 
               not discharged until paid in full.”  [Id. at 55                        
               (quoting Union Trust Co. v. United States, 70 F.2d 629,                
               630 (2d Cir. 1934)).]                                                  

               Our resolution of the facts in this case does not require us           
          to decide the Flores issue.                                                 
               Relying on section 6015(b), (c), and (f), petitioner seeks             
          three grounds for relief from joint and several liability.                  
               Relief is available under section 6015(b) (similar to former           
          section 6013(e)) if the following requirements are satisfied:               
          (1) The joint return contains an understatement of tax                      
          attributable to the spouse not seeking relief; (2) the spouse               
          seeking relief establishes that in signing the return he or she             
          did not know, and had no reason to know, that there was an                  
          understatement of tax; (3) taking into account all the facts and            
          circumstances, it would be inequitable to hold the spouse seeking           
          relief liable for the deficiency; and (4) the spouse seeking                
          relief timely elects the benefits of section 6015(b).                       
               In general, this Court has concluded that a relief-seeking             
          spouse knows or has reason to know of an understatement of tax if           






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