David C. Jonson and Estate of Barbara J. Jonson, Deceased - Page 14

                                       - 14 -                                         
                    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,                                   
               then the other individual shall be relieved of                         
               liability for tax (including interest, penalties, and                  
               other amounts) for such taxable year to the extent such                
               liability is attributable to such understatement.                      
               B.  Application to Barbara                                             
                    1.  In General                                                    
               Respondent does not dispute that Barbara satisfies the                 
          requirements of subparagraphs (A), (B), and (E) of section                  
          6015(b)(1).  The parties disagree as to whether Barbara satisfies           
          the requirements of subparagraphs (C) and (D); viz, whether                 
          (1) Barbara had actual or constructive knowledge of the                     
          understatements of tax (here, equal to the deficiencies (the                
          understatements)) attributable to the losses and (2) is entitled            
          to equitable relief.                                                        

Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011