Holly Ruocco - Page 16

                                       - 16 -                                         
          be into a sword”.  United States v. Rylander, 460 U.S. 752, 758             
          (1983); see Steinbrecher v. Commissioner, supra; Traficant v.               
          Commissioner, 89 T.C. 501 (1987), affd. 884 F.2d 258 (6th Cir.              
               The matters deemed stipulated in this case, in addition to             
          satisfying respondent’s burden of presenting predicate evidence             
          connecting petitioner to the income determined by respondent,               
          lead us to conclude that the income in question was community               
          property, only half of which is taxable to petitioner.  The                 
          stipulated facts and exhibits establish that the amounts                    
          deposited went into accounts controlled by petitioner and her               
          former husband, both of whom were performing services for Canyon            
          State Chiropractic.  Whether the services were performed by                 
          petitioner or by her former husband, payments received for those            
          services constituted community property.  See Ariz. Rev. Stat.              
          sec. 25-211 (2000).  Although respondent’s counsel speculated               
          that there might be an agreement between the parties with respect           
          to community income, such agreement would be unlikely to allocate           
          all of the income to petitioner.  We conclude, therefore, that              
          the decision to be entered in this case should reflect                      
          recomputation of petitioner’s tax liability based on attributing            
          to her one-half of the bank deposits originally determined to be            

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  Next

Last modified: May 25, 2011