Helen M. Korchak - Page 56

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               Based upon our examination of the entire record before us,             
          we find that in signing the 1982 joint tax return petitioner did            
          not know, and had no reason to know, of the understatement in               
          that return.  On that record, we further find that petitioner               
          satisfies section 6015(b)(1)(C) for her taxable year 1982.                  
               Section 6015(b)(1)(D)                                                  
               Pursuant to section 6015(b)(1)(D), petitioner must establish           
          that, taking into account all the facts and circumstances, it is            
          inequitable to hold her liable for the deficiency in tax attrib-            
          utable to the understatement in the 1982 joint tax return.  The             
          requirement in section 6015(b)(1)(D) is virtually identical to              
          the requirement of former section 6013(e)(1)(D), and cases                  
          interpreting former section 6013(e) remain instructive to our               
          analysis.  Alt v. Commissioner, 119 T.C. at 313-314.                        
               The factors that we consider in determining whether it would           
          be inequitable for purposes of section 6015(b)(1)(D) are the same           
          factors that we consider in determining whether it would be                 
          inequitable for purposes of section 6015(f).  See id. at 316.               
          One factor considered in determining whether it would be inequi-            
          table for purposes of section 6015(f) and thus for purposes of              


               28(...continued)                                                       
          would have assured her that the claimed $58,089 Madison Recycling           
          loss and the claimed Madison Recycling credits of $114,407 were             
          proper.  We shall not penalize petitioner for failing to perform            
          the act of asking Mr. Korchak about that claimed loss and those             
          claimed credits where such an inquiry would have resulted in his            
          assuring her that that claimed loss and those claimed credits               
          were appropriate.                                                           




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