Patti Ann Ollestad - Page 8

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               To qualify for relief under section 66(c), petitioner must             
          satisfy the following provisions:  (1) She must not have filed a            
          joint return with Mr. Thompson for any of the years at issue; (2)           
          she must not have included in her gross income for any of the               
          years in issue an item of community income properly includable              
          therein which, in accordance with the rules contained in section            
          879(a), would be treated as the income of Mr. Thompson; (3) she             
          must establish that she did not know, and had no reason to know,            
          of the item of community income; and (4) taking into account all            
          facts and circumstances, it is inequitable to include such item             
          of community income in her gross income.  Under section 66(c),              
          all four of the above requirements must be met before relief can            
          be granted.  Roberts v. Commissioner, 860 F.2d 1235, 1238 (5th              
          Cir. 1988), affg. T.C. Memo. 1987-391.                                      
               The first requirement is satisfied since petitioner did not            
          file a return during the years at issue.  In addition, the first            
          portion of the second requirement is satisfied since petitioner             
          did not include items of community property in her gross income             
          which were properly includable therein.                                     
               With respect to the second portion of section 66(c)(2),                
          section 879(a) attributes (1) earned income to the spouse who               
          performed the services and (2) trade or business income in                  
          accordance with section 1402(a)(5).  The income earned from                 
          Trucking constitutes income derived from a trade or business.               

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