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disallowed employee business expenses. She does not qualify for
relief under section 6015(c) because she is still married to Mr.
Applegate. See sec. 6015(c)(3). Thus, the Court begins its
analysis with section 6015(b).
A. Section 6015(b)
Section 6015(b) provides relief from joint and several
liability for tax (including interest, penalties, and other
amounts) to the extent that such liability is attributable to an
understatement of tax. To be eligible for relief, the requesting
spouse must satisfy the following five elements of section
6015(b)(1):
(A) A joint return has been made for a
taxable year;
(B) on such return there is an understatement
of 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 an 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 [makes a valid
election] * * *
Respondent does not appear to dispute that Ms. Wang
satisfies two elements of section 6015(b); namely, those
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