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(1) The joint tax return contains an
understatement of tax attributable to the spouse not
requesting relief;
(2) the spouse seeking relief establishes that in
signing the return he or she did not know, and had no
reason to know, that there was such a tax
understatement;
(3) taking into account all the facts and
circumstances, it would be inequitable to hold the
spouse requesting relief liable for the tax deficiency
related to such a tax understatement; and
(4) the spouse requesting relief timely elects the
benefit of section 6015(b).
Under section 6015(b), a requesting spouse is regarded as
knowing or as having reason to know of a tax deficiency if the
spouse was aware of the transactions or items that gave rise to
the tax deficiency or had reason to know that a deduction would
give rise to an understatement of tax. Purcell v. Commissioner,
826 F.2d 470, 473-474 (6th Cir. 1987), affg. 86 T.C. 228 (1986);
Jonson v. Commissioner, 118 T.C. 106, 115 (2002), affd. 353 F.3d
1181 (10th Cir. 2003).
Under section 6015(c), relief from joint liability for a
Federal income tax deficiency is available if the following
conditions, among others, are satisfied:
(1) At the time the election of section 6015(c)
is filed, the two spouses are divorced, legally
separated, or otherwise have been living apart for the
preceding 12 months; and
(2) the requesting spouse, at the time the return
was signed, did not have actual knowledge of the items
giving rise to the deficiency.
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