Charles Roy Schwendeman and Cindy L. Butler - Page 7




                                         -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           







Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next 

Last modified: November 10, 2007