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manner as it would have been allocated if the individual had
filed a separate return for the taxable year.
A taxpayer is eligible to elect the application of section
6015(c) if, at the time the election is filed, the taxpayer is no
longer married to or is legally separated from the individual
with whom the taxpayer filed the joint return to which the
election relates. Sec. 6015(c)(3)(A)(i)(I). The election under
section 6015(c) may be made at any time after a deficiency for
such year is asserted and no later than 2 years after the date on
which the Commissioner has begun collection activities with
respect to the taxpayer making the election. Sec. 6015(c)(3)(B).
Petitioner and intervenor were divorced on December 9, 2002, and
petitioner’s election was made soon after his receipt of the
notice of deficiency. Therefore, petitioner is eligible to elect
the application of section 6015(c) to limit his liability for the
2001 tax deficiency.
Relief under section 6015(c) is not available to petitioner
if respondent demonstrates that petitioner had actual knowledge
of the item giving rise to the deficiency. Sec. 6015(c)(3)(C);
King v. Commissioner, 116 T.C. 198, 203 (2001). The “‘knowledge
standard’” for purposes of section 6015(c)(3)(C) “‘is an actual
and clear awareness (as opposed to reason to know) of the
existence of an item which gives rise to the deficiency (or
portion thereof).’” King v. Commissioner, supra at 203 (quoting
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Last modified: May 25, 2011