Question: Joe and Joan file a joint return for the current year. They are in the 35% marginal tax bracket. Unbeknownst to Joe, Joan fails to

Joe and Joan file a joint return for the current year. They are in the 35% marginal tax bracket. Unbeknownst to Joe, Joan fails to report on the return the $8,000 value of a prize she won. She, however, used the prize to buy Joe a new boat. Is Joe entitled to innocent spouse relief? Explain.

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