- 6 - been allocated if the individual had filed a separate return for the taxable year. A taxpayer is eligible to elect relief under section 6015(c) if, at the time the election is filed, the taxpayer is no longer married to or is legally separated from the individual with whom the taxpayer filed the joint return to which the election relates. Sec. 6015(c)(3)(A)(i)(I). The election under section 6015(c) may be made at any time after a deficiency for such year is asserted and no later than 2 years after the date on which the Commissioner has begun collection activities with respect to the taxpayer making the election. Sec. 6015(c)(3)(B). Petitioner and intervenor were divorced on May 22, 2003, and petitioner’s election was made soon after his receipt of the notice of deficiency. Therefore, petitioner was entitled to seek relief under section 6015(c) to limit his liability for the 2002 tax deficiency. Relief under section 6015(c) is not available if petitioner had actual knowledge of the item giving rise to the deficiency. Sec. 6015(c)(3)(c); King v. Commissioner, 116 T.C. 198, 203 (2001). The “knowledge standard” for purposes of section 6015(c)(3)(C) “‘is an actual and clear awareness (as opposed to reason to know) of the existence of an item which gives rise to the deficiency (or portion thereof).’” King v. Commissioner, supra at 203 (quoting Cheshire v. Commissioner, supra at 195).Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011