- 11 - The determination of whether an individual is married shall be made as of the close of the taxable year. Sec. 7703(a)(1). Marital status for Federal tax purposes is defined by State law. Lee v. Commissioner, 64 T.C. 552, 556-559 (1975), affd. 550 F.2d 1201 (9th Cir. 1977). In general, we give full faith and credit to a determination of marital status by a State court possessed of jurisdiction over the subject matter and parties. E.g., Stark v. Commissioner, T.C. Memo. 2003-47. We are, however, only bound to follow interpretations of State law as announced by the highest court of that State. Commissioner v. Estate of Bosch, 387 U.S. 456, 465 (1967). Accordingly, we conclude that in the unusual circumstances of this case we are not bound by the decision of the Texas State court regarding petitioners’ marital status. Id.; Graham v. Commissioner, 79 T.C. 415, 419-421 (1982). Indeed, petitioners’ actions perpetrated a fraud on the Texas State court, and we believe that the Texas Supreme Court would not enforce such a decree against third parties (such as respondent in this case). Ms. Yeager’s marriage to Mr. Williams was dissolved in 1994. As of the close of 1994, 1995, and 1996, and through the time of trial, petitioners lived together as husband and wife and represented themselves to others as being married. Petitioners never intended to and never did physically separate from eachPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011