Patti Ann Ollestad - Page 11

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          any unreported community income.  This is not the case where                
          petitioner knew that Mr. Thompson had earnings from Trucking but            
          did not know the exact amount of those earnings.  Cf. Horner v.             
          Commissioner, T.C. Memo. 1994-447 (spouse knew her husband worked           
          full time and earned substantial income); McGee v. Commissioner,            
          T.C. Memo. 1991-510, affd. 979 F.2d 66 (5th Cir. 1992) (spouse              
          knew her husband earned income from his dental practice which was           
          primary means of support and that his records were not kept in              
          order); Thatcher v. Commissioner, T.C. Memo. 1988-537 (spouse               
          knew her husband's dental practice earned money and that the                
          dental equipment was community property which generated income);            
          Baldwin v. Commissioner, T.C. Memo. 1986-342 (spouse previously             
          filed joint returns with her husband which disclosed income; she            
          knew her husband earned a salary from teaching at a university;             
          and she knew that his salary remained the same throughout the               
          years in issue).  Accordingly, the third requirement is                     
               Finally, taking into account all of the facts and                      
          circumstances, we conclude that it would be inequitable to                  
          include the unreported community income from Trucking in                    
          petitioner's gross income.  There is no evidence that she                   
          benefited significantly from this income.  Petitioner did not               
          live extravagantly and was given money by Mr. Thompson only for             
          groceries and clothing for the children.  She took nothing away             

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