Marianne Hopkins - Page 2

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                    Held, further, P is entitled to relief under sec.                 
               6015(c), I.R.C., to the extent the deficiencies for                    
               1982, 1983, and 1984 are allocable to H under sec.                     
               6015(d), I.R.C.  For purposes of applying sec. 6015(d),                
               I.R.C., items are generally allocated as if P and H had                
               filed separate returns.  Thus, deficiencies resulting                  
               from H’s erroneous partnership deductions are generally                
               allocated to H, and deficiencies resulting from P’s                    
               erroneous NOL deductions are generally allocable to P.                 
               See sec. 6015(d)(3)(A), I.R.C.  However, pursuant to                   
               sec. 6015(d)(3)(B), I.R.C., an item otherwise allocable                
               to an individual shall be allocated to the other                       
               individual filing the joint return to the extent the                   
               item gave rise to a tax benefit to the other                           
               individual.  As a result, P is relieved of liability                   
               for deficiencies attributable to H’s erroneous                         
               partnership deductions except for the portion, if any,                 
               that offsets her income.  Likewise, P is liable for                    
               deficiencies attributable to her erroneous NOL                         
               deductions to the extent they offset her income, and                   
               she is relieved of liability for any remaining portion                 
               of the deficiencies attributable to the NOL that                       
               offsets H’s income.                                                    
                    Held, further, P is not entitled to relief under                  
               sec. 6015(f), I.R.C., for the remaining portions of the                
               deficiencies for 1982, 1983, and 1984.                                 
                    Held, further, P is not entitled to relief under                  
               sec. 6015(b), (c), or (f), I.R.C., for the underpay-                   
               ments of tax in 1988 and 1989.                                         

               Sandra G. Scott, for petitioner.                                       
               Thomas M. Rohall, for respondent.                                      


               RUWE, Judge:  The issue for decision is whether petitioner             
          is entitled to relief from joint and several liability under                
          section 6015(b), (c), or (f)1 for her 1982, 1983, 1984, 1988, and           


               1Unless otherwise indicated, all section references are to             
                                                             (continued...)           




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