Cheryl Kunsman - Page 11

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               The Court concludes that petitioner has failed to satisfy              
          the requirements of section 6015(b)(1)(C).6  Therefore,                     
          petitioner does not qualify for relief from joint and several               
          liability under section 6015(b)(1).                                         
               Section 6015(c)                                                        
               Section 6015(c) provides proportionate tax relief (if a                
          timely election is made) by allocating the deficiency between               
          individuals who filed jointly but are no longer married, are                
          legally separated, or have been living apart for a 12-month                 
          period.  Section 6015(c)(3)(C) prohibits such allocation if                 
          respondent demonstrates that petitioner had actual knowledge, at            
          the time the return was signed, of any item giving rise to a                
          deficiency that is not allocable to petitioner.  Cheshire v.                
          Commissioner, supra at 193.                                                 
               After her divorce, petitioner filed a timely election and              
          was prima facie eligible for relief under section 6015(c) for the           
          portion of any deficiency properly allocable to her former                  
          spouse.  Sec. 6015(c)(1).                                                   
               However, petitioner’s election under section 6015(c) shall             
          not apply if respondent demonstrates actual knowledge by                    
          petitioner of the IRA distribution, at the time she signed the              

               6 The five criteria of sec. 6015(b)(1) are conjunctive.                
          Having concluded that sec. 6015(b)(1)(C) is not satisfied, we               
          need not, and do not, discuss the criteria of the other                     
          subparagraphs of sec. 6015(b)(1).                                           

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