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(B) on such return there is an understatement
of tax attributable to erroneous items of one
individual filing the joint return;
(C) the other individual filing the joint
return establishes that in signing the return he
or she did not know, and had no reason to know,
that there was such understatement;
(D) taking into account all the facts and
circumstances, it is inequitable to hold the other
individual liable for the deficiency in tax for
such taxable year attributable to such
understatement; * * *
* * * * * * *
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. at 313.
On the basis of the facts and circumstances of the present
case, we find that petitioner was well aware of the distribution
of $165,838 from his own section 401(k) account through Fidelity
Investments. Petitioner may not claim that he did not have
knowledge of the unreported 10-percent early withdrawal
additional tax imposed by section 72(t), because of his and Ms.
Glenn’s tax return preparer’s “honest” mistake.
Taxpayers seeking to prove that they had no knowledge or
reason to know of an item giving rise to an understatement of tax
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