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therefore entitled to relief under section 6015(c) from joint and
several liability for the deficiency, except to the extent that
one or more of the exceptions apply.
Section 6015(c) contains three exceptions under which items
initially attributed to the nonrequesting spouse must also be
attributed to the requesting spouse. These are the “actual
knowledge” exception in section 6015(c)(3)(C), the “benefit”
exception in section 6015(d)(3)(B), and the “fraud” exception in
section 6015(d)(3)(C). There are no facts to suggest that the
“fraud” exception applies here.
A. The Actual Knowledge Exception
The first exception to the separate return rule is for items
initially allocable solely to the nonrequesting spouse of which
the requesting spouse has actual knowledge. Sec. 6015(c)(3)(C).
If petitioner had “actual knowledge * * * of any item giving rise
to a deficiency (or portion thereof)” at the time she signed the
return, that item must be allocated to her. See sec.
6015(c)(3)(C).
Respondent claims that no relief is available to petitioner
under section 6015(c) because petitioner had “actual knowledge
* * * of the items giving rise to the deficiency.” Respondent
8(...continued)
for the purpose of determining whether any item giving rise to
the deficiency should be attributed to her under the separate
return standard.
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