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Capehart included petitioner in the meeting with Mr. Hoyt, and
petitioner attended the Hoyt ranch tour. Because Mr. Capehart
trusted petitioner to perform mathematical computations, he gave
her all of the bills from the Hoyt organization to pay and
allowed her to review all of the tax returns they filed. In
addition, Mr. Capehart showed petitioner mail they received from
the partnership and often encouraged her to call the Hoyt
organization to inquire about their investment.
We conclude that petitioner has failed to prove that the
understatements of tax are attributable solely to erroneous items
of Mr. Capehart. Because petitioner’s failure to satisfy the
requirement of subparagraph (B) of section 6015(b)(1) is
sufficient for us to deny any additional relief pursuant to that
section, we need not decide whether petitioner satisfied the
requirements of section 6015(b)(1)(C) and (D). For the sake of
completeness, however, we conclude that petitioner did not meet
the requirements of section 6015(b)(1)(C) and (D) for the reasons
set forth in our analysis of section 6015(f), infra.
Accordingly, we sustain respondent’s determination to deny
petitioner relief from joint and several liability under section
6015(b)(1).
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