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tax return was filed. Sec. 6015(c)(3)(A)(i). Relief under
section 6015(c) is not available, however, to a taxpayer if it is
shown that the taxpayer had actual knowledge when signing the
return of any “item” giving rise to a deficiency. Sec.
6015(c)(3)(C).
As previously discussed, petitioner is divorced from Mr.
Lathrop, and the divorce was finalized before she requested
relief from joint and several liability.
However, as noted above, petitioner not only had reason to
know of the understatement at the time the return was signed, but
she also had actual knowledge of the items giving rise to the
deficiency. Because petitioner had actual knowledge of these
items of income, she is precluded from claiming relief under
section 6015(c).
Petitioner may be considered for relief under section
6015(f) where there is an unpaid tax or deficiency for which she
is not eligible for relief under section 6015(b) or (c). Sec.
6015(f)(2). Section 6015(f)(1) provides that a taxpayer may be
relieved from joint and several liability if it is determined,
after considering all the facts and circumstances, that it is
inequitable to hold the taxpayer liable for the unpaid tax or
deficiency. This Court reviews the Commissioner’s denial of
relief pursuant to section 6015(f) under an abuse of discretion
standard. Butler v. Commissioner, 114 T.C. at 287-292. The
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Last modified: May 25, 2011