Tracie Young - Page 11

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               Upon the basis of the facts of the present case, we find               
          that petitioner was well aware of the income received by Mr.                
          Glaze from Mayflower for his services, and that such income was             
          not reported as gross income on their 1995 joint Federal income             
          tax return.  Therefore, we conclude that petitioner may not claim           
          that she did not have knowledge of the income received by Mr.               
          Glaze.                                                                      
               Further, petitioner had actual knowledge of the interest               
          income received from the U.S. Treasury of $24, because such                 
          income was jointly received in the names of both petitioner and             
          Mr. Glaze.  Accordingly, we hold that petitioner is not entitled            
          to relief under section 6015(b).                                            
               B.  Section 6015(c)                                                    
               Section 6015(c) grants relief from joint and several tax               
          liability for electing individuals who filed a joint return and             
          are no longer married, are legally separated, or are living                 
          apart.  Generally, this type of relief treats spouses, for                  
          purposes of determining tax liability, as if separate returns had           
          been filed.  Sec. 6015(d)(3)(A); Grossman v. Commissioner, 182              
          F.3d 275, 278 (4th Cir. 1999), affg. T.C. Memo. 1996-452;                   
          Charlton v. Commissioner, 114 T.C. 333, 342 (2000); Rowe v.                 
          Commissioner, T.C. Memo. 2001-325.  The allocation, however, is             
          not permitted if the Secretary shows by a preponderance of the              
          evidence that the electing individual had “actual knowledge, at             






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