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SEC. 6015(c). Procedures to Limit Liability for
Taxpayers No Longer Married or Taxpayers Legally
Separated or Not Living Together.--
(1) In general.–-Except as provided in this
subsection, if an individual who has made a joint
return for any taxable year elects the application
of this subsection, the individual’s liability for
any deficiency which is assessed with respect to
the return shall not exceed the portion of such
deficiency properly allocable to the individual
under subsection (d).
(2) Burden of proof.–-Except as provided in
subparagraph (A)(ii) or (C) of paragraph (3), each
individual who elects the application of this
subsection shall have the burden of proof with
respect to establishing the portion of any
deficiency allocable to such individual.
(3) Election.--
* * * * * * *
(C) Election not valid with respect to
certain deficiencies.–-If the Secretary
demonstrates that an individual making an
election under this subsection had actual
knowledge, at the time such individual signed
the return, of any item giving rise to a
deficiency (or portion thereof) which is not
allocable to such individual under subsection
(d), such election shall not apply to such
deficiency (or portion). * * *
The items giving rise to the deficiency for 1993 related to
intervenor’s sole proprietorship, Mike’s Painting. “‘The
allocation of business deductions is expected to follow the
ownership of the business.’” Charlton v. Commissioner, T.C.
Memo. 2001-76 (quoting S. Rept. 105-174, at 57 (1998), 1998-3
C.B. 537, 593). In the instant case, the items giving rise to
the deficiency are allocable solely to intervenor because he
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Last modified: May 25, 2011