- 8 -
6211(a); see also sec. 6015(d)(2)(B) (discussing section 55 with
regard to the allocation of a deficiency for purposes of section
6015(c)). Therefore, we conclude that Mr. Weiler is relieved
from liability for the income (section 1) tax, self-employment
tax, and alternative minimum tax attributable or allocable to the
$14,065 adjustment.
Respondent’s concession, however, does not address whether
Mr. Weiler is relieved from the interest attributable or
allocable to the $14,065 adjustment. Section 6015(b) clearly
provides relief from liability for interest attributable to an
understatement from which the taxpayer is entitled to relief
pursuant to section 6015(b). Accordingly, we conclude that Mr.
Weiler is relieved from liability for the interest attributable
to the $14,065 adjustment.
Ms. Weiler also seeks relief pursuant to section 6015(b) and
(c) from liability for tax, penalties, interest, and other
amounts attributable or allocable to the $14,065 adjustment. We
conclude that Ms. Weiler is not relieved from liability for tax,
penalties, interest, and other amounts attributable or allocable
to the $14,065 adjustment because it was her income.6 Sec.
6 The Senate report discussing the allocation rule in sec.
6015(d)(3)(B) states: “In general, apportionment of items of
income are expected to follow the source of the income. * * *
Business * * * income * * * is allocated in the same proportion
as the ownership of the business * * * that produces the income.”
S. Rept. 105-174, at 57 (1998), 1998-3 C.B. 537, 593. The
(continued...)
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