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limitations, relief under section 6015(c) with respect to an item
giving rise to all or a portion of a deficiency is not available
to a taxpayer who had actual knowledge of that item. Sec.
6015(c)(3)(C). A taxpayer has actual knowledge of an item if he
has:
an actual and clear awareness (as opposed to reason to know)
of the existence of an item which gives rise to the
deficiency (or portion thereof). In the case of omitted
income * * * the electing spouse must have an actual and
clear awareness of the omitted income. * * *
Cheshire v. Commissioner, supra at 195.
Petitioner admits that he knew what intervenor’s employment
was during 1998, and that he knew that she derived a significant
amount of income from that employment both in the form of wages
and in the form of separate payments made by the State and
private attorneys for the preparation of transcripts. In fact,
petitioner stated in his request for section 6015 relief that “I
find especially hard to believe she [intervenor] would not report
the part time monies earned from the AOC as this was her primary
employer and also the amount earned was over $14,000.00.” We
therefore find that petitioner had actual knowledge of the
omitted income. Id. Consequently, he is not entitled to relief
pursuant to section 6015(b) or (c). Sec. 6015(b)(1)(C), (b)(2),
(c)(3)(C).
The third avenue for relief under section 6015 is the
equitable relief which may be afforded by section 6015(f). This
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