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tax attributable to erroneous items of 1 individual
filing the joint return;
(C) the other individual filing the joint return
establishes that in signing the return he or she did
not know, and had no reason to know, that there was
such understatement;
(D) taking into account all the facts and
circumstances, it is inequitable to hold the other
individual liable for the deficiency in tax for such
taxable year attributable to such understatement; and
(E) the other individual elects * * * the benefits
of this subsection not later than the date which is 2
years after the date the Secretary has begun collection
activities with respect to the individual making the
election * * *
All of the requirements must be met, and failure to meet
even one of the requirements is a bar to relief. Sec.
6015(b)(1); Alt v. Commissioner, 119 T.C. 306, 313 (2002).
Respondent concedes that petitioner has satisfied the
requirements of subparagraphs (A), (B), and (E) of section
6015(b)(1). Therefore, we must decide whether petitioner has met
the requirements of subparagraphs (C) and (D), to wit: Whether
petitioner, when signing the return knew or had reason to know
that there was a substantial understatement and/or whether,
taking into account all of the facts and circumstances, it would
be inequitable to hold petitioner liable for the understatement.
A. Whether Petitioner Knew or Had Reason To Know of the
Substantial Understatement
During 1998, section 6013(e) was repealed, and section 6015
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Last modified: May 25, 2011