- 22 -                                         
          erred in determining that petitioner did not qualify for an                 
          allocation under section 6015(c).                                           
               Respondent’s litigating position that petitioner did not               
          satisfy the marital status requirement of section                           
          6015(c)(3)(A)(i) was not reasonable because respondent had                  
          received a copy of Mr. Bulger’s death certificate more than 2               
          weeks before respondent’s answer was filed.  Respondent’s                   
          litigating position that petitioner had actual knowledge of the             
          item giving rise to the deficiency within the meaning of section            
          6015(c)(3)(C) was also not reasonable because respondent failed             
          to analyze the applicable legal principles and the factual                  
          information he possessed before he adopted his position.                    
               When respondent’s answer was filed on May 1, 2003, the                 
          Service had already entered into a settlement agreement with Mr.            
          Hoyt and was well aware of the basis for adjusting the Hoyt                 
          partnership items at issue in this case.  See River City Ranches            
          #1, Ltd. v. Commissioner, T.C. Memo. 2003-150, affd. in part,               
          revd. in part and remanded 401 F.3d 1136 (9th Cir. 2005);                   
          Mekulsia v. Commissioner, T.C. Memo. 2003-138, affd. 389 F.3d 601           
          (6th Cir. 2004); Durham Farms #1, J.V. v. Commissioner, T.C.                
          Memo. 2000-159, affd. 59 Fed. Appx. 952 (9th Cir. 2003);                    
          Shorthorn Genetic Engg. 1982-2, Ltd. v. Commissioner, T.C. Memo.            
               15(...continued)                                                       
          6015(c)(3)(C); that is, that petitioner had no actual knowledge.            
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