Shuang-Di Sun Bennett - Page 17

                                       - 16 -                                         
               portion of either) attributable to any item for which                  
               relief is not available under the preceding sentence,                  
               the Secretary may relieve such individual of such                      
               A. The Items of Community Income From Petitioner’s Return              
                  Fail To Satisfy Section 66(c)(2)                                    
               Section 66(c)(2) provides that petitioner must not have                
          included in gross income an item of community income properly               
          includable therein, which, in accordance with the rules contained           
          in section 879(a), would be treated as the income of Mr. Bennett.           
          As it relates to the items of community income reflected on her             
          1998 return ($31,385 of “wages”, $723 of taxable interest, and              
          $2,180 of IRA distributions), petitioner fails to satisfy either            
          of the conditions for relief under section 66(c)(2).                        
               The first condition, that petitioner must not “include in              
          gross income for such taxable year an item of community income              
          properly includible therein”, is not satisfied because                      
          petitioner’s original 1998 return reported the items of community           
          income from which she seeks relief.  Although petitioner                    
          subsequently submitted an amended “zero return” claiming no                 
          income, this amended return does not negate the filing of the               
          original return.                                                            
               Even if her amended return were sufficient to satisfy the              
          first requirement of section 66(c)(2), petitioner would not                 
          satisfy the second requirement that the items of community income           
          “would be treated as the income of the other spouse” in                     

Page:  Previous  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  Next

Last modified: May 25, 2011