T.C. Memo. 2003-347 UNITED STATES TAX COURT MICHAEL J. DOWNING AND SANDRA M. DOWNING, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 12108-98. Filed December 29, 2003. Ps resided in Louisiana, a community property State. Shortly before their wedding, in 1989, they “filed for registry” (La. Civ. Code Ann. art. 2332 (West 1985)) in St. Tammany Parish (where both of them then resided) a marriage contract which provided that “The intended husband and wife shall be separate in property * * *.” Before the years in issue (1994 and 1995), Ps moved to Jefferson Parish. P-H operated a plumbing business during the years in issue. Ps filed separate tax returns for the years in issue, on which they reported only their respective incomes, without regard to Louisiana’s usual community property laws. R determined that (1) substantial amounts of income from P-H’s plumbing business had not been reported on Ps’ separate income tax returns, (2) the marriage contract did not have the effect of stopping application of Louisiana’s usual community property laws for Federal income tax purposes, (3) both Ps are liable for the fraud addition to tax for both years in issue, and (4) there were other miscellaneous adjustments.Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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