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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; and
(E) the other individual elects (in such
form as the Secretary may prescribe) the
benefits of this subsection not later than
the date which is 2 years after the date the
Secretary has begun collection activities
with respect to the individual making the
election,
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 burden rests on Mrs. Richardson to establish that she has met
each of five elements enumerated above. Alt v. Commissioner, 119
T.C. 306, 311 (2002), affd. 101 Fed. Appx. 34 (6th Cir. 2004).
Respondent has conceded that the first and fifth requirements are
satisfied; thus, the second, third, and fourth requirements
remain in dispute.
At the outset, we highlight a few difficulties created by
the state of the record on this issue. Mrs. Richardson did not
testify at trial, so the Court has had no opportunity to assess
her demeanor and credibility, nor has respondent had a chance to
solicit information on cross-examination. In fact, there is a
notable dearth of evidence directed specifically to this issue.
What data can be gleaned about Mrs. Richardson’s involvement in
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