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We believe 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). * * *
The provisions of the Code concerning relief from joint and
several liability were expanded in 1998 in order to make relief
thereunder more accessible and easier to obtain. See Internal
Revenue Service Restructuring and Reform Act of 1998, Pub. L.
105-206, sec. 3201(a), 112 Stat. 685, 734; H. Conf. Rept. 105-
599, at 249 (1998), 1998-3 C.B. 755, 1003. Section 6015(c) was
added as an independent ground for relief. Generally, for a
taxpayer who is no longer married, is legally separated, or has
not resided with his or her spouse for a 12-month period, section
6015(c) provides, if properly elected, relief from joint and
several liability to the extent of the portion of the income tax
deficiency allocable to the other spouse.1
As the above emphasized statutory language indicates,
however, the election out of joint and several liability under
section 6015(c)(3)(C) will not be available if respondent
1 Under sec. 6015(c)(3)(B), an election for relief from joint
and several liability is to be made no later than 2 years after
the date on which respondent has begun “collection activities”.
The statutory language does not state the earliest date on which
an election under sec. 6015(c) may be made. Respondent in this
case has not raised any issue as to the timeliness of Michael’s
election under sec. 6015(c).
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