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computing his or her proportionate share of the deficiency.10
Sec. 6015(d)(3)(B); Hopkins v. Commissioner, 121 T.C. 73, 83-86
(2003).
An election under section 6015(c) is invalid, however, if
the Secretary demonstrates that the requesting spouse had actual
knowledge, when signing the return, of any item giving rise to a
deficiency that is otherwise allocable to the nonrequesting
spouse.11 Sec. 6015(c)(3)(C). In cases involving erroneous
deductions, an individual is deemed to have actual knowledge of
an item giving rise to a deficiency if she has actual knowledge
of the factual basis for the denial of the deductions. King v.
Commissioner, 116 T.C. 198, 204 (2001). Although the requesting
spouse bears the burden of proving the portion of the deficiency
that is properly allocable to her, see sec. 6015(c)(2),
respondent bears the burden of proving that the requesting spouse
had actual knowledge of any items giving rise to the deficiency,
sec. 6015(c)(3)(C).
10In addition, the requesting spouse’s proportionate share
of the deficiency shall be increased by the value of any
disqualified asset transferred to her by the nonrequesting
spouse. Sec. 6015(c)(4).
11An election under sec. 6015(c) is also invalid if the
Secretary demonstrates that assets were transferred between the
individuals filing the joint return as part of a fraudulent
scheme. Sec. 6015(c)(3)(A)(ii).
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