Donna M. Orsino - Page 5

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          withdrawal, and savings bond interest), and it would not be                 
          inequitable to hold her liable for the tax.                                 
               In limited situations, taxpayers filing joint Federal income           
          tax returns may be relieved of joint liability pursuant to                  
          section 6015.  Petitioner is not entitled to relief under section           
          6015(b) if she had reason to know of the items of income.  Sec.             
          6015(b)(1)(C).  Similarly, petitioner is not entitled to relief             
          under section 6015(c) if she had actual knowledge of the item               
          giving rise to the omitted income.  Sec. 6015(c)(3)(C); Cheshire            
          v. Commissioner, 115 T.C. 183, 197 (2000), affd. 282 F.3d 326               
          (5th Cir. 2002).                                                            
               We agree with respondent that petitioner had actual                    
          knowledge of Mr. Orsino’s compensation relating to Betz Dearborne           
          and National Engineering and his 401(k) withdrawal.  Accordingly,           
          with respect to Mr. Orsino’s compensation and 401(k) withdrawal,            
          petitioner is not entitled to relief pursuant to section 6015(b)            
          or (c).                                                                     
               Petitioner, however, did not have clear awareness of the               
          interest income relating to the savings bond.  Cf. Cheshire v.              
          Commissioner, supra at 197 (holding that knowledge of her                   
          husband’s pension withdrawal disqualified the taxpayer from                 
          section 6015 relief even though the taxpayer did not know the tax           
          consequences of the transaction).  Petitioner was led to believe            
          that Mr. Orsino received a cash gift from his mother.  She did              






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