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erroneous items of the nonrequesting spouse; (3) at the time of
signing the return, the spouse seeking relief did not know, and
had no reason to know, of the understatement; (4) taking into
account all the facts and circumstances, it is inequitable to
hold the spouse seeking relief liable for the deficiency in tax
attributable to the understatement; and (5) the requesting spouse
seeks relief within 2 years of the first collection activity
relating to the liability.
Respondent concedes that the first and last requirements of
section 6015(b)(1) (i.e., that a joint return was filed and that
petitioner timely requested relief) are met. Respondent
acknowledges in his pretrial memorandum that he has no evidence
upon which to challenge petitioner’s assertion that she did not
know, and had no reason to know, of Mr. Olivas’s retirement
income at the time she signed the return. And we are satisfied
(and thus conclude) that the aforesaid third requirement of
section 6015(b)(1) is met.
Respondent contends that petitioner has not met the second
requirement for relief under section 6015(b)(1); i.e., that there
be an understatement of tax attributable to erroneous items of
Mr. Olivas. See sec. 6015(b)(1)(B). Respondent points to the
fact that the understatement5 on the return resulted from
5Sec. 1.6015-2(b), Income Tax Regs., provides that the term
“understatement” has the meaning given to that term by sec.
(continued...)
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