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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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