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provided the taxpayer meets the requirements of section 6015(b).
The requirements of section 6015(b) that must be met are as
follows:
(A) a joint return has been made for a taxable
year;
(B) on such return there is an understatement of
tax attributable to erroneous items of 1 individual
filing the joint return;
(C) the other individual filing the joint return
establishes that in signing the return he or she did
not know, and had no reason to know, that there was
such understatement;
(D) taking into account all the facts and
circumstances, it is inequitable to hold the other
individual liable for the deficiency in tax for such
taxable year attributable to such understatement; and
(E) the other individual elects (in such form as
the Secretary may prescribe) the benefits of this
subsection not later than the date which is 2 years
after the date the Secretary has begun collection
activities with respect to the individual making the
election, * * *
Thus, as pertinent here, Cyndie would not be relieved from
joint and several liability under section 6015(b) to the extent
she had actual knowledge, or reason to know, that there was
income from Phillip's Ponzi scheme that was omitted from the
1992, 1993, and 1994 joint returns. Where relief is requested
with respect to the omission of income (the situation involved
herein), this Court has concluded that, where a spouse seeking
relief has actual knowledge of the underlying transaction that
produced the omitted income, section 6015 relief is denied. See
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