Herbert L. Mitchell, deceased, and Ella Marie Mitchell - Page 11

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                  properly allocable to the individual under subsection                                
            Thus, section 6015(c)(1) allows a taxpayer who is eligible and so                          
            elects to limit his or her liability to that portion of a                                  
            deficiency that is “properly allocable to” the taxpayer as                                 
            provided in section 6015(d).  There is no dispute that no portion                          
            of the deficiency would be properly allocable to petitioner under                          
            section 6015(d).  The dispute here is whether petitioner may                               
            elect the application of section 6015(c).  Section 6015(c)(3)                              
            lists the criteria for electing the application of subsection                              
            (c).  Section 6015(c)(3)(A) and (B) lay out eligibility and                                
            timing requirements for the election; respondent has conceded                              
            that petitioner satisfies these requirements.3                                             
                  The dispute in this case centers on subparagraph (C), which                          
            provides as follows:                                                                       
                        (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).  This subparagraph shall not apply                          
                  where the individual with actual knowledge establishes that                          
                  such individual signed the return under duress.                                      

                  3 Respondent concedes petitioner meets the requirement of                            
            sec. 6015(c)(3)(A)(i)(I) as a result of Mr. Mitchell’s death and                           
            that an election should be deemed to have been made in the                                 

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Last modified: May 25, 2011