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community income.9 Consequently, we need to consider only relief
under section 66(c).
To qualify for statutory relief under section 66(c),
petitioner must satisfy all four conditions provided in
paragraphs (1)-(4) of section 66(c). In particular, section
66(c) provides:
SEC. 66(c). Spouse Relieved of Liability in
Certain Other Cases.-- Under regulations prescribed by
the Secretary, if–-
(1) an individual does not file a joint
return for any taxable year,
(2) such individual does not include in
gross income for such taxable year an item of
community income properly includible therein
which, in accordance with the rules contained
in section 879(a), would be treated as the
income of the other spouse,
(3) the individual establishes that he
or she did not know of, and had no reason to
know of, such item of community income, and
(4) taking into account all facts and
circumstances, it is inequitable to include
such item of community income in such
individual’s gross income,
then, for purposes of this title, such item of
community income shall be included in the gross income
of the other spouse (and not in the gross income of the
individual). Under procedures prescribed by the
Secretary, if, taking into account all the facts and
circumstances, it is inequitable to hold the individual
liable for any unpaid tax or any deficiency (or any
9 Sec. 66(b) is not a relief provision and can be used only
by the Commissioner to disallow the benefits of community
property laws to a taxpayer. It cannot be used by a taxpayer to
claim relief from community property.
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