- 8 - business receipts. Intervenor claims that petitioner maintained business records for Mike’s Painting on her computer and that he was not involved in keeping the records. Intervenor also claims that petitioner should be held liable for the deficiency attributable to the business because joint returns were filed for 1993, and petitioner was responsible for putting together the information that was used to complete the Schedule C for Mike’s Painting. Respondent contends that he cannot demonstrate that petitioner had “actual knowledge” and, therefore, proposes to grant petitioner relief under section 6015(c). Respondent argues that since intervenor has not introduced credible evidence demonstrating that petitioner had actual knowledge of any item creating the deficiency, petitioner is entitled to relief under section 6015(c). Intervenor has filed his notice of intervention for the purpose of opposing petitioner’s claim for relief under section 6015. If intervenor can establish that petitioner had “actual knowledge” of the erroneous business deductions, then petitioner should not be entitled to relief under section 6015(c). The relevant inquiry is whether petitioner knew or believed that the costs and business expenses reported on the 1993 return were overstated. Rowe v. Commissioner, supra. At trial, petitioner credibly testified that she was not involved in thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011