Philip Ira Maggio, Jr. - Page 8

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               Respondent agreed that petitioner was entitled to relief               
          under section 6015(c).  Intervenor filed her notice of                      
          intervention for the purpose of objecting to respondent’s                   
          granting petitioner relief under section 6015.  If intervenor               
          offers sufficient evidence to show that petitioner had “actual              
          knowledge” of the correct income and expenses associated with the           
          real estate appraisal business, then petitioner is not entitled             
          to relief under section 6015(c).                                            
               Intervenor’s testimony that petitioner inflated some of her            
          Schedule C expenses and completely fabricated others is not                 
          corroborated by other testimony or evidence.3  The record and               
          petitioner’s testimony satisfy the Court that petitioner relied             
          on the records presented by intervenor to substantiate the                  
          expenses and resulting losses associated with her real estate               
          appraisal business.  The record contains no facts that show error           
          in respondent’s position, and the Court concludes that petitioner           
          did not have actual knowledge of the factual circumstances                  
          regarding intervenor’s Schedule C expenses.  Intervenor’s                   
          testimony does not sway the Court.  The Court sustains                      
          respondent’s determination that petitioner is entitled to relief            
          from joint and several liability under section 6015(c).                     


               3Petitioner contends that, subsequent to filing the return,            
          he returned all receipts and documents given to him regarding the           
          real estate appraisal business.  Intervenor, however, asserts               
          that she was unable to locate these items because they were not             
          given back to her or never existed.                                         




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