Tracie Young - Page 10

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          each requirement of section 6015(b)(1).  See Rule 142(a).  We               
          find that petitioner fails to meet the requirement of section               
          6015(b)(1)(C); therefore, we need not, and do not, decide whether           
          petitioner satisfies the other requirements of section                      
          6015(b)(1).                                                                 
               Pursuant to section 6015(b)(1)(C), petitioner must                     
          establish that she did not know and further had no reason to know           
          of the understatement in tax on the joint return which she filed            
          with her husband.  This Court has held that “where a spouse                 
          seeking relief has actual knowledge of the underlying transaction           
          that produced the omitted income, innocent spouse relief is                 
          denied.”  Cheshire v. Commissioner, 115 T.C. 183, 192-193 (2000),           
          affd. 282 F.3d 326 (5th Cir. 2002).                                         
               In the present case, petitioner and Mr. Glaze maintained a             
          joint checking account.  Both petitioner and Mr. Glaze deposited            
          their respective wage income into said joint checking account.              
          Petitioner occasionally reviewed the bank statements regarding              
          their joint checking account, and she personally used moneys from           
          the joint checking account to pay joint household expenses.                 
          Further, petitioner knew that Mr. Glaze drove trucks for                    
          Mayflower and knew he was receiving wages from Mayflower.                   
          Petitioner also reviewed the 1995 joint income tax return before            
          filing it with the Internal Revenue Service.                                







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