Mary A. George - Page 20

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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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