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) 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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Last modified: November 10, 2007