- 11 -
Because the entire tax deficiency in this instance arises as
a result of Ms. Cullen’s unreported TGY income, petitioner knew
or had reason to know of the entire tax deficiency and is,
therefore, ineligible for any relief under section 6015(b)(2).
IV. Relief Under Section 6015(c)
Section 6015(c) limits the liability of a taxpayer, such as
petitioner, who is no longer married and who makes the
appropriate election. In relevant part, section 6015(c)
provides:
SEC. 6015(c). Procedures To Limit Liability for
Taxpayers No Longer Married or Taxpayers Legally
Separated or Not Living Together.--
* * * * * * *
(3) Election.--
* * * * * * *
(C) Election not valid with respect to
certain deficiencies.–If the Secretary
demonstrates that an individual making an
election under this subsection had actual
knowledge, at the time such individual signed
the return, of any item giving rise to a
deficiency (or portion thereof) which is not
allocable to such individual under subsection
(d), such election shall not apply to such
deficiency (or portion). This subparagraph
shall not apply where the individual with
actual knowledge establishes that such
individual signed the return under duress.
As noted previously, petitioner had actual knowledge of
Ms. Cullen’s unreported TGY income when the joint tax return for
1999 was signed and filed. Petitioner also testified on cross-
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011