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(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 of 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.
Our jurisdiction to review petitioner’s claim for relief is
conferred by section 6015(e), which allows a spouse who has
requested relief from joint and several liability to contest the
Commissioner’s denial of relief by filing a timely petition in
this Court.
There is no dispute that petitioner satisfies subparagraphs
(A) and (E) of section 6015(b)(1). Petitioner filed joint
returns for 1985 and 1986 with Mr. Aranda, as required by section
6015(b)(1)(A), and made a qualifying election on Form 8857 for
taxable years 1985 and 1986, as required by section
6015(b)(1)(E). However, respondent contends that petitioner has
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Last modified: May 25, 2011