Renee Trupin D'Aunay - Page 15

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                    then the other individual shall be relieved of                    
                    liability for tax (including interest, penalties,                 
                    and other amounts) for such taxable year to the                   
                    extent such liability is attributable to such                     
                    understatement.                                                   
               The requirements of section 6015(b)(1) are stated in the               
          conjunctive.  Accordingly, a failure to meet any one of them                
          prevents a requesting spouse from qualifying for the relief                 
          offered therein.  Alt v. Commissioner, 119 T.C. 306, 313 (2002).            
               Respondent argues, and we agree, that petitioner has failed            
          to satisfy the requirements of subparagraphs (C) and (D) of                 
          section 6015(b)(1).  Petitioner was well aware of the business              
          activities of Trupin and was a participant in the expenditure of            
          funds far exceeding any amounts ever reported on a joint tax                
          return with Trupin.  Petitioner also knew that she had                      
          significant earnings during the years in issue and that no income           
          tax was withheld from her earnings.  Petitioner’s response is               
          that, although she does not recall specifically what occurred,              
          she may have been shown only the signature page of the tax                  
          returns, and told to sign, and the returns were too complicated             
          for her to understand.                                                      
               Taxpayers seeking to prove that they had no knowledge or               
          reason to know of an item giving rise to an understatement of tax           
          must demonstrate, at a minimum, that they have fulfilled a “duty            
          of inquiry” with respect to determining whether their correct tax           
          liability was reported on the return for the year for which they            






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Last modified: May 25, 2011