Estate of Keith L. Gurr - Page 19




                                       - 18 -                                         

               Section 6015(c) provides relief from joint liability for               
          spouses either no longer married, legally separated, or living              
          separate and apart.  Generally, this avenue of relief allows a              
          spouse to elect to be treated as if a separate return had been              
          filed.  Rowe v. Commissioner, T.C. Memo. 2001-325.  Section                 
          6015(c)(2) places the burden of proof with respect to                       
          establishing the portion of the deficiency allocable to the                 
          electing spouse upon such spouse.                                           
               With respect to erroneous deduction items, section 1.6015-             
          3(d)(2)(iv), Proposed Income Tax Regs., 66 Fed. Reg. 3898 (Jan.             
          17, 2001), entitled Erroneous Deduction Items, provides generally           
          that erroneous deduction items related to a business or                     
          investment are allocated to the spouse who owned the business or            
          investment, and, if both spouses owned an interest in such                  
          activity, an erroneous deduction item is generally allocated                
          between the spouses in proportion to each spouse's ownership                
          interest unless there is clear and convincing evidence supporting           
          a different allocation.  Erroneous items of income are allocated            
          similarly to the spouse who was the source of the income.  Sec.             
          1.6015-3(d)(2)(iii), Proposed Income Tax Regs., 66 Fed. Reg. 3898           
          (Jan. 17, 2001).  Section 6015(c)(2) provides that each                     
          individual who elects application of section 6015(c) "shall have            
          the burden of proof with respect to establishing the portion of             
          any deficiency allocable to such individual".                               





Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011