Marilyn Stringham, a.k.a. Marilyn Olsen, Petitioner, and Forrest Bird, Intervenor - Page 6

                                        - 5 -                                         
          Restructuring and Reform Act of 1998, Pub. L. 105-206, sec.                 
          3201(g), 112 Stat. 740.                                                     
               Section 6015 provides three avenues for relief to a taxpayer           
          who has filed a joint return:  (1) Section 6015(b) allows relief            
          for understatements of tax attributable to certain erroneous                
          items on the return; (2) section 6015(c) provides relief for a              
          portion of an understatement of tax for taxpayers who are                   
          separated or divorced; and (3) section 6015(f) more broadly                 
          confers on the Secretary discretion to grant equitable relief for           
          taxpayers who otherwise do not qualify under section 6015(b) or             
          (c).                                                                        
               The first avenue for relief is section 6015(b).  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,3 the taxpayer establishes that he “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),                  
          (b)(2).                                                                     
               Intervenor had a Merrill Lynch Account with Chevron but                
          transferred the balance into a separate IRA when he left Chevron.           

               3Neither respondent nor intervenor dispute that, in this               
          case, the requirements of subparagraphs (A), (B), and (E) of sec.           
          6015(b)(1) have been satisfied.  The dispute is whether                     
          petitioner meets the requirements of subparagraphs (C) and (D) of           
          sec. 6015(b)(1).                                                            





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