- 12 -
(3) Election.
* * * * *
(C) Election not valid with respect to certain
deficiencies. If the Secretary demonstrates that an
individual making an election under this subsection had
actual knowledge, at the time such individual signed
the return, of any item giving rise to a deficiency (or
portion thereof) which is not allocable to such
individual under subsection (d), such election shall
not apply to such deficiency (or portion) * * *
Therefore, section 6015(c) relieves certain joint-filing
taxpayers by making them liable only for those items of which
they had actual knowledge, rather than being liable for all items
reportable on the joint return. In effect, this approach is
intended, to the extent permitted, to treat certain spouses as
though they had filed a separate return. This is a departure
from predecessor section 6013(e) and companion section 6015(b)
where the intended goal was to permit relief only if the relief-
seeking spouse did not know or had no reason to know of an item.
Accordingly, taxpayers who are either no longer married,
separated (for 12 months or more), or not living together
(petitioner’s circumstance) may elect treatment as though they
had separately filed. Section 6015(c)(3)(C), however, does not
permit the election of separate treatment for any item where “the
Secretary demonstrates that an individual * * * had actual
knowledge, [of the item] at the time such individual signed the
return”. Petitioner has elected separate treatment under section
6015(c), and, accordingly, respondent bears the burden of showing
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011