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actual knowledge of the factual basis for the 10-percent
additional tax pursuant to section 72(t), and he cannot rely on
ignorance of the law for relief from liability. Mitchell v.
Commissioner, 292 F.3d 800, 803-806 (D.C. Cir. 2002), affg. T.C.
Memo. 2000-332. Regardless of whether the taxpayer “possesses
knowledge of the tax consequences of the item at issue, * * *[he]
is considered as a matter of law to have reason to know of the
* * * understatement and thereby is effectively precluded from
establishing to the contrary.” Mitchell v. Commissioner, supra
at 804.
D. Section 6015(f) Analysis
Therefore, the only remaining opportunity for relief
available to petitioner is section 6015(f). Section 6015(f)
provides as follows:
SEC. 6015(f). Equitable Relief.--Under procedures
prescribed by the Secretary, if-–
(1) taking into account all the facts and
circumstances, it is inequitable to hold the individual
liable for any unpaid tax or any deficiency (or any
portion of either); and
(2) relief is not available to such individual
under subsection (b) or (c),
the Secretary may relieve such individual of such liability.
As directed by section 6015(f), the Commissioner has
prescribed guidelines in Rev. Proc. 2003-61, 2003-2 C.B. 296,8 to
8This revenue procedure superseded Rev. Proc. 2000-15, 2000-
(continued...)
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