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III. Statutory Relief Under Section 66
Having concluded that petitioner’s share of community income
is $45,713, we consider the application of section 66. Under
certain circumstances, section 66 provides that a taxpayer may be
relieved of liability on community income. Section 66(a)
addresses the treatment of community income in the case of
spouses who live apart. Section 66(b) allows the Secretary to
disallow the benefits of community property laws if the taxpayer
acted as if he or she were solely entitled to the income and
failed to notify his or her spouse of the nature and amount of
the income before the due date for filing the return. Section
66(c) provides a taxpayer with relief if certain circumstances
are satisfied.
Under the circumstances of the present case, petitioner is
not eligible for the type of relief provided by section 66(a) and
(b). Section 66(a) does not apply because petitioner and Mr.
Bennett lived together in 1998. Section 66(b) allows the
Commissioner to disregard the benefits of community property
laws, and in the present case, petitioner is seeking relief from
8(...continued)
Juice considered any of the payments as improper or illegally
issued.
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