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that a spouse's refusal to sign a joint return, for reasons
unrelated to the return, does not preclude the return from
qualifying as a joint return. Federbush v. Commissioner, supra.
Moreover, Mrs. Noonan allegedly refused to sign the May return
she had received from Ms. Burton because of her belief that the
return might contain inaccuracies. This excuse is not convincing
in that she could have easily compared it to the original in her
father's possession and observed that it was exactly the same.
Her other excuse, that she did not want to be held liable for any
deficiencies relating to the return, is equally not convincing in
that she has an adequate remedy in contract law, should it become
necessary. We think that her effort to file a separate return
when she was not liable to do so was an effort (with or without
Ms. Burton's cooperation and advice) to frustrate petitioner's
attempt to file the joint return pursuant to their prior
agreement. Her testimony to the contrary was unpersuasive.
We must, however, consider the effect of the requirement in
the indemnification agreement that petitioner submit funds to the
law firm to cover the tax liability before the law firm would be
responsible for filing the return. This is a "condition
precedent" under contract law and failure to comply therewith
usually voids the contract obligation.5
5 In California, a property settlement agreement is a
contract, and the rules of contract law apply in its
(continued...)
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