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3. Whether the Requesting Spouse Knew or Had Reason To
Know of the Item Giving Rise to the Deficiency
Petitioner contends that this factor does not favor
respondent because she believed that she and Mr. Shattun properly
reported the $21,992 distribution using a well-known computer
software program. We disagree.
In the case of an income tax liability resulting from a
deficiency, the Commissioner is less likely to grant relief under
section 6015(f) if the requesting spouse knew or had reason to
know of the item giving rise to the deficiency. Rev. Proc. 2003-
61, sec. 4.03(2)(a)(iii). Actual knowledge of the item giving
rise to the deficiency is a strong factor weighing against
relief. Id. Petitioner had actual knowledge of the $21,992
distribution which generated the tax liability, and she completed
the Form 1040 on which she and Mr. Shattun reported the
distribution.
Petitioner testified that she and Mr. Shattun relied on the
computer software program and her interpretation of sources about
tax that she used. The question is whether petitioner had
knowledge of the transaction, not whether she had knowledge of
its tax consequences. See Bokum v. Commissioner, 992 F.2d 1132,
1134 (11th Cir. 1993) (knowledge contemplated by section 6013(e)
5(...continued)
We conclude that this factor is neutral whether or not her
support for her son is a reasonable basic living expense.
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