Dorene Bulger - Page 21

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          did not have to evaluate the effect of his joint investment                 
          position under section 6015(c) before adopting his litigating               
          position because petitioner did not agree that the partnership              
          interest in question was a joint investment.  Respondent’s                  
          contention confuses a disagreement about the allocation that must           
          be made under section 6015(d) with his obligation under section             
          6015(c) to allocate the tax liability if the requirements of                
          section 6015(c) are met.                                                    
               In this case, petitioner properly elected to have the                  
          deficiencies at issue allocated between herself and Mr. Bulger as           
          required by section 6015(c)(3).  By the time petitioner made her            
          election, respondent had already conducted an audit of                      
          petitioner’s tax returns and an extensive examination of the Hoyt           
          organization and had obtained extensive information regarding               
          petitioner’s claim for relief under section 6015.  Respondent’s             
          argument in his response to petitioner’s motion that he needed              
          more information from petitioner to evaluate whether petitioner             
          was somehow disqualified by section 6015(c)(3)(A)(ii) or (C) from           
          making an election under section 6015(c) simply does not ring               
          true.  Respondent’s litigating position as summarized in his                
          answer did not make any allegation regarding section                        
          6015(c)(3)(A)(ii) or (C);15 respondent simply denied that he had            

               15The answer did deny, on the basis of lack of knowledge or            
          information, the representation in the petition as to sec.                  
                                                             (continued...)           





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