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OPINION
Unreported Income
Respondent determined in the notice of deficiency (notice),
inter alia, (1) that petitioner has unreported income for 1983
based on Bureau of Labor Statistics (BLS) and (2) that petitioner
has unreported income for 1984 and 1985 based upon one-half of
the community income paid to and/or earned by Mr. Hardy during
those years. Respondent concedes that petitioner does not have
unreported income for 1983 based on BLS; however, she contends
that petitioner has unreported income for that year based on one-
half of the community income paid to and/or earned by Mr. Hardy
during that year.
Since respondent's position with respect to petitioner's
unreported income for the years at issue rests on the application
of the community property law of the State of Nevada where peti-
tioner and Mr. Hardy resided at all relevant times, we shall
first discuss that law. See United States v. Mitchell, 403 U.S.
190, 197 (1971). Pursuant to Nevada law, community property
generally is any property acquired after marriage by either
spouse or by both spouses. Nev. Rev. Stat. sec. 123.220 (1993).
All property acquired after marriage is presumed to be community
property. Forrest v. Forrest, 99 Nev. 602, 604, 668 P.2d 275,
277 (1983). That presumption may be rebutted, but only by clear
and convincing evidence, by the spouse claiming that property
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