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petitioner’s withholding credits, and the imposition of the
section 72(t) additional tax of $382. For 1997, respondent’s
adjustments resulted in a net increase of $8,277.50 in
petitioner’s income, a net decrease of $470 in petitioner’s
deductions, a $144 decrease in petitioner’s withholding credits,
and the imposition of the section 72(t) additional tax of $1,283.
Petitioner timely filed a Form 8857, Request for Innocent
Spouse Relief, seeking equitable relief from liability under the
provisions of section 66(c). Respondent determined that
petitioner was not entitled to equitable relief under section
66(c).
Discussion
1. IRA Distributions and Petitioner’s Gross Income
Spouses domiciled in Louisiana are subject to a community
property regime. La. Civ. Code Ann. arts. 2327, 2334 (West
1985). Spouses may opt out of the community property regime by
entering into a matrimonial agreement to that effect. La. Civ.
Code Ann. art. 2329 (West 1985). There was no such agreement
between petitioner and Mr. Morris. The first issue is whether,
under these circumstances, portions of the distributions from Mr.
Morris’s IRA to him are included in petitioner’s income as
community property income.2
2 The facts are not in dispute and the issue is primarily
one of law. Sec. 7491, concerning burden of proof, has no
bearing on this issue.
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