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individual’s liability for a deficiency to the portion of the
deficiency properly allocable to that individual under section
6015(d). In general, an item that gives rise to a deficiency on
a joint Federal income tax return will be allocated to the
individuals who file the return in the same manner as that item
would have been allocated had those individuals filed separate
returns. Sec. 6015(d)(3)(A). In this case, the deficiency for
each year in issue is entirely attributable to petitioner’s
former spouse.
Petitioner’s section 6015(c) election has been made in this
proceeding. Respondent agrees that petitioner is eligible to
make the election and further agrees that the election is timely.
See sec. 6015(c)(3)(A) and (B). Respondent argues, however, that
petitioner’s section 6015(c) election is not valid with respect
to any of the deficiencies here in dispute because at the time
petitioner signed the return for each year, he had “actual
knowledge” of the “item giving rise to” the deficiency not
allocable to him under section 6015(d). Sec. 6015(c)(3)(C).
Respondent bears the burden of proof on the point. Sec.
6015(c)(2).
Petitioner testified that at the time he signed each return,
he was unaware of his former spouse’s participation in the
parking lot scheme, and he was further unaware of any of the
illegal income she received as a result. Petitioner’s former
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Last modified: March 27, 2008