- 13 - that petitioner had “actual knowledge * * * of any item giving rise to a deficiency (or portion thereof) which is not allocable to [petitioner]”.2 The concept of actual knowledge under section 6015(c) has been addressed by this Court in Charlton v. Commissioner, 114 T.C. 333, 341-342 (2000), where relief was granted, and Cheshire v. Commisioner, 115 T.C. __, __ (2000) (slip op. at 17-23), where relief was denied. In Charlton v. Commissioner, supra, a recent application of the innocent spouse rule, we explained that a section 6015(c) election “is not valid if respondent shows that the individual making the election had actual knowledge when signing the return of any ‘item’ giving rise to a deficiency (or portion thereof) which is not allocable to the electing individual.” Id. at 341. In Charlton, the taxpayer seeking relief was aware that the source of income was his wife’s business, but he did not compare records provided him by his wife with other business records to determine whether his wife had accounted for all of the income. Although Mr. Charlton had actual knowledge of income from a particular source and knew generally of his spouse’s source of income, he had no knowledge that all income from that source had 2 Respondent, has agreed that petitioner is entitled to sec. 6015(c) relief with respect to three items other than the Primera transaction. The only question we consider here is whether petitioner had “actual knowledge” within the meaning of sec. 6015(c).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