Helen M. Korchak - Page 45

                                       - 45 -                                         
          such relief.  Alt v. Commissioner, 119 T.C. 306, 313 (2002),                
          affd. 101 Fed. Appx. 34 (6th Cir. 2004).                                    
               The parties agree that petitioner satisfies section                    
          6015(b)(1)(A), (B), and (E).  Petitioner argues, and respondent             
          disputes, that she satisfies section 6015(b)(1)(C) and (D).                 
               Section 6015(b)(1)(C)                                                  
               Pursuant to section 6015(b)(1)(C), petitioner must establish           
          that in signing the 1982 joint tax return she did not know, and             
          had no reason to know, of the understatement of tax in that                 
          return attributable to the claimed $58,089 Madison Recycling loss           
          and the claimed Madison Recycling tax credits of $114,407 (under-           
          statement in the 1982 joint tax return).                                    
               Respondent does not dispute that in signing the 1982 joint             
          tax return petitioner did not have actual knowledge of the                  
          understatement in the 1982 joint tax return.  The parties dispute           
          whether in signing the 1982 joint tax return petitioner had                 
          reason to know of the understatement in the 1982 joint tax                  
          return.                                                                     
               According to respondent, petitioner had constructive knowl-            
          edge of the items reported in the 1982 joint tax return.  Respon-           
          dent is correct that a taxpayer who signs a tax return without              
          reviewing it is charged with constructive knowledge of its                  
          contents.  See Bokum v. Commissioner, 94 T.C. 126, 148 (1990),              
          affd. 992 F.2d 1132 (11th Cir. 1993).  We must nonetheless                  
          determine whether in signing the 1982 joint tax return petitioner           




Page:  Previous  35  36  37  38  39  40  41  42  43  44  45  46  47  48  49  50  51  52  53  54  Next

Last modified: May 25, 2011