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Respondent must also establish that petitioner had knowledge
of the amount of omitted income. “[W]here an electing spouse has
actual knowledge of an income source, but no knowledge of the
amount of the financial gain, the electing spouse may still
qualify for relief under section 6015(c).” Rowe v. Commissioner,
T.C. Memo. 2001-325; sec. 1.6015-3(c)(4), Example (4)(ii), Income
Tax Regs.
After a thorough review of the record we hold that
respondent has established petitioner’s actual knowledge of the
existence and amount of Ms. Morrison’s benefit income. At the
time of signing the 1996 joint return, petitioner knew Ms.
Morrison had received monthly benefits and a lump-sum benefit
award. He was made aware of the amount of benefits when Ms.
Morrison presented her benefit statement to the joint return
preparer and through discussions of the benefits with Ms.
Morrison. Accordingly, we hold that petitioner is ineligible to
elect the application of section 6015(c) and is not entitled to
relief from joint and several liability.
To reflect the foregoing,
Decision will be entered
for respondent.
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