- 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.
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