- 19 - Commissioner, 116 T.C. at 204. 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). 2. Reasonableness of Respondent’s Position Respondent contends that the position taken in the notice of determination was substantially justified because the information available to the Appeals officer at the time led him to believe that “petitioner had actual knowledge of the items giving rise to the deficiencies”. In arguing that the Appeals Office’s position was reasonable, respondent explains that because the Appeals officer determined that petitioner had actual knowledge, he did not have to consider whether disqualified assets had been transferred to petitioner, whether assets had been transferred between petitioner and Mr. Owen as part of a fraudulent scheme, or how the deficiencies in issue could be allocated under section 6015(d). Respondent further contends that the position in the answer was substantially justified because (1) the information available to him at the time showed that petitioner had knowledge of and had been involved with the Hoyt organization, and (2) without further factual development, it was impossible to determinePage: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Next
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