- 21 - 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.Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
Last modified: May 25, 2011