Teresa J. Fox - Page 9

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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                     
               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)            

          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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