116 T.C. No. 16
UNITED STATES TAX COURT
KATHY A. KING, Petitioner AND
CURTIS T. FREEMAN, Intervenor v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 5989-97. Filed April 10, 2001.
P claimed relief from joint liability under sec.
6013(e), I.R.C., which was repealed and replaced by
sec. 6015, I.R.C. Intervenor (I) is P’s former spouse,
who intervened pursuant to sec. 6015(e)(4), I.R.C., in
opposition to P’s claim for relief. See King v.
Commissioner, 115 T.C. 118 (2000). P and I filed a
joint income tax return for 1993, on which they claimed
a loss from a cattle-raising activity conducted by I.
The loss was disallowed by R on the ground that the
activity was not engaged in for profit under sec.
183(a), I.R.C.
1. Held: P meets all the requirements for relief
under sec. 6015(c), I.R.C., unless R demonstrates that
P had actual knowledge of the item giving rise to the
deficiency at the time she signed the return. See sec.
6015(c)(3)(C), I.R.C. When the item giving rise to the
deficiency is a disallowed deduction, such knowledge
must include knowledge of the factual circumstances
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