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stipulated that petitioner is entitled to seek relief under
section 6015(c) for 1997.
Relief under section 6015(c) is not available if the
Commissioner demonstrates that the requesting spouse had actual
knowledge, at the time the return was signed, of any item giving
rise to a deficiency (or portion thereof) that is not allocable
to such individual. Sec. 6015(c)(3)(C); Hopkins v. Commissioner,
121 T.C. 73, 86 (2003); Culver v. Commissioner, 116 T.C. 189, 194
(2001). Petitioner has the burden of proving which items would
not have been allocated to her if the spouses had filed separate
returns. See Mora v. Commissioner, supra at 290; Levy v.
Commissioner, T.C. Memo. 2005-92.
While the taxpayer generally has the burden of proof, in
order to preclude relief under section 6015(c) the Commissioner
must carry the burden of demonstrating by a preponderance of the
evidence that the requesting spouse had, at the time she signed
the return, actual knowledge of “any item giving rise to a
deficiency”. Rule 142(a)(1); Culver v. Commissioner, supra at
196; Charlton v. Commissioner, 114 T.C. 333, 341-342 (2000); sec.
1.6015-3(c)(2)(i), Income Tax Regs. “Item” means “an item of
income, deduction, or credit”. Cheshire v. Commissioner, supra
at 337.
The items giving rise to the 1997 deficiency are: (1)
Unreported income from farmers who paid Contractor for the
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