-7-
referenced third requirement and, hence, that she does not
qualify for relief under section 6015(b).
Section 6015(c) allows a qualifying individual to receive
proportionate relief from joint and several liability for a
deficiency if the following conditions, inter alia, are
satisfied: (1) Upon electing relief under section 6015(c), the
requesting spouse is divorced, legally separated, or otherwise
has lived apart from the other spouse for the past 12 months, and
(2) when the joint return was signed, the requesting spouse did
not have actual knowledge of the items giving rise to the
deficiency. Actual knowledge is present if the requesting spouse
had actual knowledge of the factual circumstances which made the
item unallowable as a deduction. King v. Commissioner, 116 T.C.
198, 204 (2001); see also Cheshire v. Commissioner, 115 T.C. 183
(2000), affd. 282 F.3d 326 (5th Cir. 2002). In that we have
concluded supra that Butler knew that the charitable contribution
deduction was invalid, we hold that Butler does not qualify for
any proportionate relief under section 6015(c).
Because we have held that Butler is not entitled to either
full or proportionate relief for 2002 under section 6015(b) or
(c), we now consider whether she is entitled to equitable relief.
Under section 6015(f), the Commissioner has the discretion to
grant equitable relief to any individual who files a joint return
but is not entitled to full or proportionate relief under section
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