-3-
Petitioners’ 2002 income tax return was prepared by H&R
Block. Butler and Schwendeman went to H&R Block together to have
their return prepared. During their visit with H&R Block,
petitioners relayed information to the preparer jointly and
waited for the return together.
On their 2002 return, petitioners claimed deductions for
charitable contributions totaling $13,590 (cash or check
contributions of $13,110 and other contributions of $480).
Butler reviewed the return and noted the amount claimed for
charitable contributions. Butler had not made any charitable
contributions during the year and asked Schwendeman about the
reported deduction for charitable contributions. Butler was
informed by Schwendeman that it was “within Internal Revenue
Service guidelines.” Butler knew that there was a strong
likelihood that Schwendeman had not actually made the
contributions as reported but opted for convenience not to
inquire further. Schwendeman did not make any charitable
contributions during 2002.
In 2005, respondent mailed petitioners a notice of
deficiency for 2002. The notice of deficiency disallowed
petitioners’ deduction for charitable contributions for lack of
substantiation. After petitioners petitioned the Court to
redetermine that disallowance, Butler requested from respondent
innocent spouse relief for 2002 under section 6015(b), (c), and
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