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The $18,774 at issue is composed of 22 separate checks.
Petitioner examined these checks and identified three of the
checks as bearing her signature. Mr. Fullen signed petitioner’s
name to many of the checks that were cashed.
Mr. Fullen admits he earned the compensation in issue and it
is he who owes the corresponding income tax. He also admits that
he has not filed a Federal income tax return for 1998. While
under oath, Mr. Fullen gave respondent his Social Security number
twice.
While petitioner and Mr. Fullen reside together, they have
never been married. Petitioner has never given anyone the
impression that she was married to Mr. Fullen.
Discussion
Respondent contends that if the Court finds that the
nonemployee compensation is not attributable to petitioner,
respondent will be placed in a classic whipsaw position because
respondent has no record of Mr. Fullen as a taxpayer.
Respondent alleges in the alternative, that if petitioner
did not earn the nonemployee compensation in issue, petitioner
was Mr. Fullen’s common law wife and, as such is liable for
income tax on one-half Mr. Fullen’s income. Respondent also
contends that under such circumstances, petitioner is required to
change her filing status from single to married filing separate.
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Last modified: May 25, 2011