- 6 - erroneous items are attributable to your spouse. Respondent advised petitioner of her right to administratively appeal the decision but did not offer petitioner an Appeals conference. On or about September 14, 2001, petitioner administratively appealed respondent’s denial of relief from joint and several liability. Petitioner filed Form 12509, Statement of Disagreement, in which she summarized the facts and law in support of her request for relief. Petitioner maintained that all of the partnership items on the returns were items properly allocable to her spouse for purposes of section 6015(c) and reiterated the reasons why she did not have actual knowledge of any items giving rise to the deficiency. In addition, petitioner stated that the burden of proof is on the Commissioner to show actual knowledge, and she included a citation to King v. Commissioner, 116 T.C. 198 (2001), which articulates a standard for evaluating actual knowledge in erroneous deduction cases. Petitioner’s statement further provided, in relevant part, as follows: The fact that the electing spouse signed the partnership agreements, signed checks made payable to Hoyt, signed correspondence to Hoyt, or acquiesced to a joint investment with their spouse does not prove that the electing spouse had actual knowledge that the claimed items were not allowable. Moreover, the recent conviction and sentencing of Jay Hoyt shows affirmatively that the Barbaras [sic] had NO knowledge of the factual circumstances that made the deductionsPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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