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65-66 (2003).3 Under section 6015(b), the Court may grant a
taxpayer full or apportioned relief from joint and several
liability for an understatement of tax on a joint return if,
among other requirements,4 the taxpayer establishes that she “did
not know and had no reason to know” that the other spouse
understated that spouse’s tax liability on the return. Sec.
6015(b)(1)(C), (2). Except as otherwise provided in section
6015, the requesting spouse bears the burden of proving that she
satisfies each requirement of section 6015(b)(1). See Rule
142(a); Alt v. Commissioner, 119 T.C. 306, 311 (2002), affd. 101
Fed. Appx. 34 (6th Cir. 2004).
In the instant case, the Court finds that petitioner knew or
had reason to know of the understatement of tax at the time she
signed the return. The Court is satisfied that petitioner was
aware that Mr. Lathrop received both unemployment compensation
and nonemployee compensation during the year at issue.
Petitioner admitted in her testimony that she knew of these
sources of income because she discussed them with her former
3The requirement that a proposed or assessed deficiency be
present precludes petitioner from seeking relief under sec.
6015(b) or (c) for the underpayment of income tax reported on the
joint return.
4Neither respondent nor petitioner disputes that, in this
case, the requirements of subpars. (A), (B), and (E) of sec.
6015(b)(1) have been satisfied. The dispute is solely as to
whether petitioner meets the requirements of subpars. (C) and (D)
of sec. 6015(b)(1).
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