Stacy Lee Gonce - Page 6
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offered therein. Alt v. Commissioner, 119 T.C. 306, 313 (2002),
affd. 101 Fed. Appx. 34 (6th Cir. 2004).
Petitioner does not meet all the requirements of section
6015(b)(1) for 1999 or 2001. The 1999 return does not include
the $2,829 of nonemployee compensation that petitioner received
from her newspaper route that year. To the extent that the
understatement of tax for 1999 is attributable to petitioner’s
own unreported income, it is not attributable solely to Mr. Gonce
as required for relief under section 6015(b)(1).
Respondent concedes that the understatement of tax due for
2001 is attributable exclusively to Mr. Gonce. However, section
6015(b)(1)(C) is not satisfied for either 1999 or 2001.
Petitioner has not shown that she did not know and had no reason
to know of the understatement of tax in those years. See
Cheshire v. Commissioner, 115 T.C. 183, 192-193 (2000) (holding
that a requesting spouse does not meet the requirement of section
6015(b)(1)(C) if she has actual knowledge of the underlying
transaction that produced the omitted income), affd. 282 F.3d 326
(5th Cir. 2002). Petitioner had actual knowledge of the payments
she and Mr. Gonce received as compensation for maintaining their
individual newspaper routes during the years in issue.
Petitioner had the opportunity to review the tax returns for
those years to ensure that all of petitioner’s and Mr. Gonce’s
income was reported accurately before she signed those returns,
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Last modified: March 27, 2008