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“The requirements of section 6015(b)(1) are stated in the
conjunctive. Accordingly, a failure to meet even one of them
prevents a requesting spouse from qualifying for relief.” Alt v.
Commissioner, 119 T.C. 306, 313 (2002), affd. ___ Fed. Appx. ___
(6th Cir. 2004). There is no dispute that petitioner satisfies
subparagraphs (A), (B), and (E) of section 6015 (b)(1). Nor is
there any doubt that petitioner does not satisfy subparagraph
(C). Under this requirement, the individual seeking relief under
section 6015(b) must establish “that in signing the return he or
she did not know, and had no reason to know” that there was an
understatement attributable to the erroneous items of the other
spouse. Sec. 6015(b)(1)(C); Cheshire v. Commissioner, 115 T.C.
183, 192-193 (2000), affd. 282 F.3d 326 (5th Cir. 2002). Here
petitioner candidly acknowledged that when signing and filing the
joint tax return he knew of his wife’s unreported TGY income.
Consequently, petitioner is ineligible for relief under section
6015(b)(1).
Notwithstanding the individual’s knowledge or reason to know
of some part of the understatement, section 6015(b)(2) permits
the individual to qualify for relief as to the remainder of the
understatement. Such relief is available if the individual
establishes that in signing the return he or she did not know,
and had no reason to know, the extent of the understatement.
Sec. 6015(b). In that case, the individual will be relieved of
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Last modified: May 25, 2011