- 28 - on the part of the other spouse.” Jonson v. Commissioner, 118 T.C. at 119 (citing Hayman v. Commissioner, supra at 1262). Normal support is not considered a significant benefit. Hayman v. Commissioner, supra at 1262 (citing Flynn v. Commissioner 93 T.C. 355, 367 (1989)). Petitioner received significant benefits from the refunds. The refunds enabled her to contribute capital and lend funds to the newly created business entities. Further, the Pierces’ failure to report the correct tax liability did not result from any concealing, overreaching, or wrongful conduct on the part of Mr. Pierce. Holding the Pierces jointly and severally liable for the tax deficiency is not inequitable. Lastly, the objectives of the innocent spouse provisions would not be well served if petitioner was afforded relief in the circumstances we consider. When enacting these relief provisions, Congress expressed concern about the possibility that taxpayers could hide behind or otherwise abuse these provisions. The Senate report in connection with the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3201(a), 112 Stat. 734, contained the explanation that “The Committee is concerned that taxpayers not be allowed to abuse these rules * * * by transferring assets for the purpose of avoiding the payment of tax by the use of this election.” S. Rept. 105-174, at 55-56 (1998), 1998-3 C.B. 537, 591-592.Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
Last modified: May 25, 2011