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proceeds) from the nonrequesting spouse that is beyond
normal support and traceable to items omitted from
gross income that are attributable to the nonrequesting
spouse, the requesting spouse will be considered to
have received significant benefit from those items.[9]
* * *
Petitioner contends that the only benefit she received from the
understatement was the estimated $750 tax for which she would
have been liable if she had filed separate rather than joint tax
returns. We, however, do not believe that petitioner’s estimated
$750 annual benefit approximates the actual benefit she received
because petitioner filed joint returns. Furthermore, petitioner
concedes that she received from Mr. George a pension of $250,000
(converted by petitioner into an IRA) and life insurance proceeds
9Rev. Proc. 2000-15, 2000-1 C.B. 447, references sec.
1.6013-5(b), Income Tax Regs., for an explanation of “significant
benefit”. Sec. 1.6013-5(b), Income Tax Regs., effective at the
time Rev. Proc. 2000-15, 2000-1 C.B. at 447, was published but
subsequently replaced, is substantially similar to sec. 1.6015-
2(d), Income Tax Regs., which is currently in effect. Sec.
1.6013-5(b), Income Tax Regs., provided:
normal support is not a significant “benefit” * * *.
Evidence of direct or indirect benefit may consist of
transfers of property, including transfers which may be
received several years after the year in which the
omitted item of income should have been included in
gross income. Thus, for example, if a person seeking
relief receives from his spouse an inheritance of
property or life insurance proceeds which are traceable
to items omitted from gross income by his spouse, that
person will be considered to have benefitted from those
items. Other factors which may also be taken into
account, if the situation warrants, include the fact
that the person seeking relief has been deserted by his
spouse or the fact that he has been divorced or
separated from such spouse.
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