Michael G. Culver and Christine M. Culver - Page 9




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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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