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was filed and must have elected the applicability of section
6015(c) not later than 2 years after the date on which collection
activity began. Sec. 6015(c)(3). Furthermore, and perhaps most
important to these facts, relief under section 6015(c) is not
available to a taxpayer if it is shown that the taxpayer had
actual knowledge when signing the return of any “item” giving
rise to the deficiency. Sec. 6015(c)(3)(C).
Petitioner is now divorced from intervenor, and the divorce
decree was finalized before petitioner requested relief from
joint and several liability. Petitioner timely filed a Form 8857
to request relief under section 6015. Accordingly, the remaining
issue is whether petitioner had no actual knowledge of the income
item leading to the underpayment.
In this case, petitioner had actual knowledge of the “item”
because he entered the amount listed on intervenor’s Form 1099
from her pension account into the income tax preparation software
when completing and filing the 1999 return. Because petitioner
had actual knowledge of intervenor’s pension income, and, in
fact, applied the tax withheld from that income against total tax
liability on the 1999 return, he is precluded from claiming
relief under section 6015(c).
Because petitioner is not eligible for relief under section
6015(b) and (c), we must consider the equitable relief provisions
of section 6015(f). Section 6015(f) provides, in part, that a
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Last modified: May 25, 2011