- 51 -
Therefore, to the extent petitioner lacked actual knowledge of
these items, she will qualify for relief from joint liability
under section 6015(c) for the portion of the item allocable to
Mr. Rowe.26
2. Actual Knowledge
Respondent argues that petitioner had actual knowledge that
the charitable contributions were not made in 1988 and 1989. In
order to prove actual knowledge, respondent must show that
petitioner had “actual knowledge of the factual circumstances
which made the item unallowable as a deduction.” King v.
Commissioner, 116 T.C. at 204. In the instant case, respondent
disallowed the charitable contribution deductions because
petitioners failed to substantiate the claimed deductions. Thus,
the relevant inquiry is whether petitioner knew or believed that
charitable contributions in the amounts reported on petitioners’
1988 and 1989 tax returns were not made.
In the instant case, Mr. Rowe was in charge of petitioners’
financial and business affairs. Petitioner testified that the
amount petitioners’ tithed to the church was Mr. Rowe’s decision.
Petitioner further testified that she was “told when to write
checks to the church”, and she wrote checks only when directed to
26Because petitioner cannot qualify for relief under sec.
6015(c) for the portions of items which are allocable to her, we
analyze her ability to qualify for relief for such portions in
our later discussion under sec. 6015(b) and (f). See infra pp.
53-61.
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