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are included in petitioner’s share of community income and (2)
whether petitioner is entitled, under section 66(c), to equitable
relief from liability for unpaid taxes on half of the community
income for 1996 and 1997.1 Petitioner resided in Baton Rouge,
Louisiana, at the time the petition was filed.
The facts may be summarized as follows. During 1996 and
1997, petitioner was married to and lived with Larry Morris (Mr.
Morris) in Louisiana, a community property State. They did not
have a matrimonial agreement separating their property during the
years at issue. Petitioner and Mr. Morris are currently
separated and living apart.
During the years at issue petitioner and Mr. Morris
maintained one checking account over which both had signature
authority. Mr. Morris kept the checkbook and all bank records in
his possession and gave petitioner checks for household expenses
such as the mortgage, utilities, and food. Petitioner did not
have ready access to the bank records. Mr. Morris used this same
checking account for his business activities.
In 1996, Mr. Morris withdrew $7,645 from an IRA that was
created and owned by him and withdrew an additional $25,660 from
the IRA in 1997. Petitioner knew that Mr. Morris made a
withdrawal in 1997 because he purchased a new automobile for his
1 Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for the years in issue, and Rule
references are to the Tax Court Rules of Practice and Procedure.
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Last modified: May 25, 2011