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relief. Contrary to petitioner’s argument, we find both that the
understatement as to the 1996 return is attributable to her and
that she knew of this understatement when she filed that 1996
return. We conclude that petitioner cannot carry her burden as
to subparagraphs (B) and (C) and that she does not qualify for
full/apportioned relief.8
B. Proportionate Relief
Section 6015(c) provides proportionate relief from joint
liability on a joint return. Petitioner bears the burden of
proving the portion of any deficiency which is allocable to her.
Sec. 6015(c)(2). Where petitioner had actual knowledge of the
omitted income underlying the deficiency, she is not entitled to
proportionate relief. See Cheshire v. Commissioner, 115 T.C. 183
(2000), affd. 282 F.3d 326 (5th Cir. 2002).
Because we find that petitioner had direct and actual
knowledge of the omitted income, we conclude that she is not
entitled to proportionate relief.
C. Equitable Relief
Section 6015(f) gives the Commissioner discretion to grant
equitable relief to any individual who files a joint return and
who is not entitled to either full/apportioned relief or
proportionate relief. Because we have held that petitioner is
not entitled to either full/apportioned relief or proportionate
8 This conclusion makes it unnecessary for us to address
subpar. (D).
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