Marianne Hopkins - Page 8

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               1.  Section 6015(b)                                                    
               To qualify for relief under section 6015(b)(1), the electing           
          spouse must establish, inter alia, that:  (A) A joint return has            
          been made for a taxable year; (B) there is an understatement of             
          tax on the return which is attributable to the erroneous items of           
          the nonelecting spouse; (C) in signing the return, the electing             
          spouse did not know, and had no reason to know, that there was              
          such an understatement; and (D) taking into account all the facts           
          and circumstances, it is inequitable to hold the electing spouse            
          liable for the deficiency in tax for the taxable year                       
          attributable to the understatement.  See Alt v. Commissioner, 119           
          T.C. 306, 313 (2002).                                                       
               Petitioner is not entitled to relief under section 6015(b)             
          with respect to the understatements attributable to the                     
          disallowed NOL carryforward deductions.  Those items are                    
          attributable to the residence at 111 Diablo Drive, which she                
          owned.  Petitioner agrees that the casualty loss and the NOL                
          carryforward deductions are her tax items for purposes of section           
          6015(b).  Petitioner cannot be granted relief under section                 
          6015(b) for understatements that are attributable to her own                
          erroneous items.  See sec. 6015(b)(1).                                      
               The Far West Drilling partnership deductions are Mr.                   
          Hopkins’s tax items.  With respect to those deductions,                     
          petitioner bears the burden of proving that in signing the joint            

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Last modified: May 25, 2011