- 6 - requesting spouse must timely file an election for relief, sec. 6015(c)(3)(B); and, at the time the election is filed, she must no longer be married to, or must be legally separated or living apart from, the individual with whom the requesting spouse filed the joint return (the nonrequesting spouse), sec. 6015(c)(3)(A)(i). Petitioner satisfies those requirements. Additionally, relief is available to the requesting spouse only for that portion of the deficiency properly allocable to the nonrequesting spouse. Sec. 6015(c)(1), (d). Respondent concedes that the deficiency is entirely allocable to Mr. Spruill, and we so find. B. Actual Knowledge A requesting spouse who meets the above requirements may yet be denied relief under section 6015(c) if the Commissioner can demonstrate that, at the time the requesting spouse signed the joint return, she had actual knowledge of any item giving rise to a deficiency (or portion thereof) that is not allocable to her. Sec. 6015(c)(3)(C). Both this court and the Court of Appeals for the Fifth Circuit, the Court of Appeals to which an appeal in this case would lie, barring the parties’ stipulation to the contrary, see sec. 7482(b), have defined culpable knowledge for purposes of sec. 6015(c)(3)(C) as the actual and clear awareness of the item, as distinguished from mere reason to know of the item. Cheshire v. Commissioner, 282 F.3d 326, 337 & n.26 (5thPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011