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requesting spouse’s right to allocate liability under section
6015(c), requires the Commissioner to prove that the requesting
spouse had actual knowledge of the factual basis for the denial
of the deductions. Id. at 204; see also Mora v. Commissioner,
117 T.C. 279 (2001) (requirement that a requesting spouse have
actual knowledge of an item giving rise to the deficiency
requires proof of more than a taxpayer’s knowledge that an item
appears on the return).
Like section 6015(c)(3)(C), Rev. Proc. 2000-15, supra,
requires, for purposes of section 6015(f), that the requesting
spouse’s knowledge of the items giving rise to the deficiency be
examined. In order to ascertain the level of the requesting
spouse’s knowledge of the items giving rise to the deficiency for
purposes of section 6015(f), we must examine whether the
requesting spouse knew or had reason to know of the factual basis
for the denial of the deductions. See King v. Commissioner,
supra at 204; Mora v. Commissioner, supra at 291-292.
In this case, respondent conceded, for purposes of section
6015(c), that he could not prove that petitioner had actual
knowledge of the items giving rise to the deficiency. With
respect to section 6015(f), our review of the record convinces us
that petitioner did not have actual knowledge of the items giving
rise to the deficiency. However, we still must decide whether
petitioner had reason to know of the items giving rise to the
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