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held liable under section 6015(c)(1) may be increased as a result
of a transfer of disqualified assets under section 6015(c)(4).
Under section 6015(c)(4)(A), the portion of the deficiency
for which the taxpayer electing the application of section
6015(c) is liable (without regard to section 6015(c)(4)(A)) is
increased by the value of any disqualified asset transferred to
the taxpayer. The term “disqualified asset” means any property
or right to property transferred to the taxpayer making the
election under section 6015(c) (i.e., petitioner) by the other
individual filing such joint return (i.e., Mr. Ohrman) if the
principal purpose of the transfer was the avoidance of tax or
payment of tax. Sec. 6015(c)(4)(B)(i).
Under section 6015(c)(4)(B)(ii), there is a presumption that
any asset transfer that occurs after the date that is 1 year
before the first letter of proposed deficiency is sent by
respondent has as its principal purpose the avoidance of tax or
payment of tax. (The letter of proposed deficiency allows the
taxpayer an opportunity for administrative review in the Internal
Revenue Service Office of Appeals. Sec. 6015(c)(4)(B)(ii)(I).)
This presumption, however, does not apply to any transfer made
pursuant to a decree of divorce or separate maintenance or a
written instrument incident to such a decree. Sec.
6015(c)(4)(B)(ii)(II); see also sec. 71(b)(2)(B) (explaining that
the term “divorce or separation instrument” means a written
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